Galaxy Publishing Inc. was recently organized. The company issued common shares to a lawyer who provided legal services of $15,000 to help organize the corporation. Galaxy also issued common shares to an inventor in exchange for his patent with a fair value of $80,000. In addition, Galaxy received cash both for the issuance of 5,300 of its preferred shares at $130 per share and for the issuance of 29,000 common shares at $26 per share. During the first year of operations, Galaxy earned net income of $70,000 and declared a cash dividend of $35,000. Without making journal entries, determine the total share capital created by these transactions.

Galaxy Publishing Inc. was recently organized. The company issued common shares to a lawyer who provided legal services of $15,000 to help organize the corporation. Galaxy also issued common shares to an inventor in exchange for his patent with a fair value of $80,000. In addition, Galaxy received cash both for the issuance of 5,300 of its preferred shares at $130 per share and for the issuance of 29,000 common shares at $26 per share. During the first year of operations, Galaxy earned net income of $70,000 and declared a cash dividend of $35,000. Without making journal entries, determine the total share capital created by these transactions.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1CP: Prepare general journal entries for the following transactions, identifying each transaction by...

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