Parkland Dental Clinic Corporation was incorporated on May 1, 2016. The following transactions occurred during the month:
|
May |
1 |
Issued 1,000 preferred shares for $3 cash each. |
|
2 |
Issued 2,000 common shares for $5 cash each. |
|
|
5 |
Issued 1,500 common shares for $2 cash each. |
|
|
10 |
Issued 1,000 preferred shares in exchange for land valued at $1,000. |
|
|
15 |
Issued 3,000 preferred shares for $2 cash each. |
|
|
21 |
Issued 5,000 common shares for $3 cash each. |
|
|
24 |
Repurchased 100 preferred shares at $2 each, held as treasury shares. |
Assume that Parkland Dental Clinic was authorized to issue an unlimited number of 6%, non-cumulative, non-voting preferred shares and an unlimited number of common, voting shares.
Required:
- Prepare journal entries to record the May transactions.
- Prepare the shareholders’ equity section of the balance sheet at May 31, 2016 and the related note to the financial statement.
- Prepare the statement of changes in equity for the one-month period ended May 31, 2016.
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