As of December 31, 2017, Shannon Corporation Had 500,000 Common

Essay

As of December 31, 2017, Shannon Corporation had 500,000 common shares authorized, 100,000 of which had been issued for proceeds of $1.9 million. The Retained Earnings balance was $1,150,000 and Accumulated Other Comprehensive Income was $1,800,000.On January 18, 2018, 50,000 common shares were issued at $25 per share. Net income for 2018 was $275,000. No dividends were declared in 2018.Instructions
a. Prepare the entry to record the common share issue on January 18.
b. Prepare the shareholders' equity section of the statement of financial position at December 31, 2018.