Tyler Corporation Has 100,000 Preference Shares with a €40 Par

question 295

Essay

Tyler Corporation has 100,000 preference shares with a €40 par value authorized. During the year, it had the following transactions related to its preference shares.
(a) Issued 30,000 shares at €55 per share.
(b) Issued 10,000 shares for equipment having a €700,000 asking price. The shares had a fair value of €60 per share
Instructions
Journalize the transactions.

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Definitions:

Office Machines

Equipment used in an office environment for administrative or clerical tasks, such as printers, copiers, and computers.

Depreciation

The reduction in the value of an asset over time, typically due to wear and tear, obsolescence, or market conditions.

Net Investment

The total spending on new capital minus depreciation on existing capital within a given period.

Gross Investment

Refers to the total amount of investment in physical assets and capital expenditures made by businesses before accounting for depreciation.