Question

After incorporation on January 15, 2017, the only share capital issued by the privately-owned Sarasota Corporation is 1,000 common shares issued at $10 each. Sarasota reports under IFRS although it is allowed to follow ASPE. Other activity related to shareholder's equity is outlined below.

June 12 Issued 41,000 common shares for cash at $15 per share.
June
30 Issued 1,600 common shares to a law firm in settlement of their bill for $27,230. (Use Professional Fees Expense) On June 30, the shares had a fair value of $14 each.
July
11 Issued 1,400 preferred shares for $42 per share. Each share was convertible into 7 common shares.
Oct.
1 Issued 5,500 common shares in exchange for land. The common shares were trading at $13 per share on that date. The land's fair value was estimated to be $72,100.
Nov.
15 Issued 1,600 preferred shares for $48 per share.
Nov. 22 Preferred shareholders converted 550 of the preferred shares into common shares. The fair values of the common and preferred shares on that day were $13.5 and $46.20 respectively.

Record the share transactions.

Answer 1

Date	Accounts Titles & Explanation	Debit	Credit
12-Jun	Cash	$615,000
	Common Stock		$410,000
	Additional Paid in capital - common stock		$205,000
30-Jun	Professional Fees Expense	$27,230
	Common Stock		$16,000
	Additional Paid-in capital		$11,230
11-Jul	Cash	$58,800
	Preferred Stock		$58,800
1-Oct	Land	$72,100
	Common Stock		$55,000
	Additional Paid-in capital		$17,100
15-Nov	Cash	$76,800
	Preferred Stock		$76,800
22-Nov	Preferred Stock	$23,100
	Additional Paid-in capital	$15,400
	Common Stock		$38,500