P8-lB. Account for stock transactions (LO 1)
Simba Corporation was started on July 1, 2006. The company is authorized to issue 100,000 shares of 570, $100 par value preferred stock and 1,800,000 shares of common stock with a par value of $2 per share. The following stock transactions took place during the fiscal year ended June 30, 2007.
Issued 40,000 shares of common stock for cash at $23.50 per share
Issued 10,000 shares of preferred stock for cash at $ 101 per share
Issued 40,000 shares of common stock for cash at $24.80 per share
Issued 7,000 shares of preferred stock for cash at $102 per share
Issued 25,000 shares of common stock for cash at $25 per share
Required
a. Show each transaction in the accounting equation.
b. Prepare the contributed capital portion of the shareholder’s equity section at June 30,2007.