question archive Gão Limited was organized on January 1, 2017
Gão Limited was organized on January 1, 2017
Subject:BusinessPrice: Bought3
Gão Limited was organized on January 1, 2017. It is authorized to issue 10,000 8%, HK$1,000 par value preference shares, and 500,000 no-par ordinary shares with a stated value of HK$20 per share. The following share transactions were completed during the first year Jan. 10 Issued 100,000 ordinary shares for cash at HK$48 per share. Mar. 1 Issued 5,000 preference shares for cash at HK$1,050 per share. Apr. 1 Issued 18,000 ordinary shares for land. The asking price of the land was HK$980,000. The fair value of the land was HK$920,000. May 1 Issued 80,000 ordinary shares for cash at HK$45 per share. Aug. 1 Issued 10,000 ordinary shares to attorneys in payment of their bill of HK$320,000 for services provided in helping the company organize. Sept. 1 Issued 10,000 ordinary shares for cash at HK$50 per share. Nov. 1 Issued 1,000 preference shares for cash at HK$1,060 per share. Instructions (a) Journalize the transactions. (b) Post to the equity accounts. (Use J5 as the posting reference.) (c) Prepare the share capital section of the statement of financial position at December 31, 2017
