Torrie Corporation is authorized to issue an unlimited number of common shares and 1,000,000 shares of preferred shares. During 2013, its first year of operation, the company had profit of $200,000. The following share transactions occurred:
Jan 1 Paid the province $2,000 for incorporation fees.
Jan 15 Issued 500,000 of $1 cumulative preferred shares at $7 per share.
Jan 30 Lawyers for the company accepted 500 common shares as payment for legal services provided in helping the company incorporate. The legal services are estimated to have a value of $5,000. The shares were actively trading at $10.50 per share.
Jul 2 Issued 100,000 common shares for land. The land had an asking price of $900,000. The shares are currently selling on a provincial exchange at $8 per share.
Instructions
a. Journalize the transactions for Torrie Corporation.
b. Prepare the shareholders' equity section of the balance sheet.

Question

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The Answer of Torrie Corporation is authorized to issue an unlimited number of common shares and 1,000,000 shares of preferred shares. During 2013, its first year of operation, the company had profit of $200,000. The following share transactions occurred:
Jan 1 Paid the province $2,000 for incorporation fees.
Jan 15 Issued 500,000 of $1 cumulative preferred shares at $7 per share.
Jan 30 Lawyers for the company accepted 500 common shares as payment for legal services provided in helping the company incorporate. The legal services are estimated to have a value of $5,000. The shares were actively trading at $10.50 per share.
Jul 2 Issued 100,000 common shares for land. The land had an asking price of $900,000. The shares are currently selling on a provincial exchange at $8 per share.
Instructions
a. Journalize the transactions for Torrie Corporation.
b. Prepare the shareholders' equity section of the balance sheet.

Torrie Corporation Is Authorized to Issue an Unlimited Number of Common