Essay
RD Holdings Ltd. which has authorized share capital of an unlimited number of common shares, and 1,000,000 preferred shares, had the following share transactions during 2014, its first year of operations:
Jan 2 Issued 30,000 common shares at $0.10 each.
Jan 5 Issued 50,000 common shares to Roy Daines in exchange for management services valued at $5,000.
Jan. 31 Issued 1,000,000 common shares to Rachel Daines in exchange for merchandise inventory valued at $15,000, land valued at $30,000 and a building valued at $55,000.
Mar 31 Issued 60,000 to Gilmore Law Firm in exchange for legal services. It is assumed that the market price of RD Holding's shares is unchanged since January 2.
Dec 1 Issued 20,000 of $2 preferred shares for $20 per share.
Instructions
a. Record the 2014 share transactions.
b. Prepare the share capital section of RD Holdings' balance sheet at December 31, 2014.
Correct Answer:
Verified
Correct Answer:
Verified
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