Question 5 (10 Marks) Jude Corporation has been authorized to issue 20,000 $100 par value, 10%, non-cumulative preference shares and 1,000,000 no-par ordinary shares. The corporation assigned a $2.50 stated value to the ordinary shares. A December 31, 2014, the ledger contained the following balances pertaining to equity Share Captial-Preference Share Premium-Preference Share Capital Ordinary Share Premium-Ordinary Treasury Shares-Ordinary (1,000 shares) Share Premium-Treasury Retained Earnings 120,000 12,000 1,000,000 1,600,000 9,000 1,000 82,000 The preference shares were issued for land having a fair value of $132,000. All ordinary shares issued were for cash. In November,500ordinary shares were purchased for the treasury at a per share cost of S9. In December, 500 treasury shares were sold for $11 per share. No dividends were declared in 2014 Required Prepare the journal entries for the: 1. 2. 3. 4. Issuance of preference shares for land Issuance of ordinary shares for cash Purchase of treasury shares (ordinary) for cash Sale of treasury shares for cash

47 0

Get full Expert solution in seconds

$1.97 ONLY

Unlock Answer