Moreland Holdings Inc

Essay

Moreland Holdings Inc. has authorized share capital of an unlimited number of common shares and 1,000,000 preferred, $3-cumulative preferred shares. At January 1, 2014, the balances in its share capital accounts were $45,000 in common shares representing 15,000 shares and $30,000 in preferred shares representing 1,000 shares. The company had a balance of $50,000 in contributed surplus from previous years' repurchase of common shares. The retained earnings balance on that date was $180,000 and accumulated other comprehensive income was $62,000. Profit for the year ending December 31, 2014 was $24,000 and other comprehensive income items for the year were $5,000. There were no dividends in arrears at January 1, 2014 and no dividends were declared during 2014.
During 2014, Moreland had the following share transactions:
Mar 1 Issued 4,000 common shares for $5 each.
Jun 30 Issued 500 preferred shares for $11 each.
Sep 1 Issued 60,000 common shares in exchange for land valued at $285,000.
Dec 1 Reacquired 50,000 common shares for $5.25 each.
Instructions
a. Journalize the share transactions.
b. Prepare the equity section of Moreland's balance sheet at December 31, 2014 and describe any additional disclosure required related to share capital.