Gabrial Ltd

question 13

Essay

Gabrial Ltd. was incorporated February 1, 2021 and is authorized to issue an unlimited number of preferred and common shares. The company entered into the following transactions during the year:
Feb 10 Issued 30,000 common shares for $ 2.30 per share.
Feb 21 Issued 4,000 common shares to the company's accountants as payment for a bill of $ 18,000 for services performed in helping the company to incorporate.
Mar 16 Issued 1,000 preferred shares for $ 95 per share.
Sep 10 Reacquired 3,000 common shares for $ 1.75 per share.
Instructions
Prepare the journal entries to record the above transactions.

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Definitions:

Stock Issuance Costs

Expenses associated with the process of issuing new stocks in the market, such as legal fees, printing expenses, and commissions.

Financial Statements

Materials that present a snapshot of a business's financial health, detailing the balance sheet, income statement, and cash flow statement.

Common Voting Stock

Shares in a corporation that grant the holder the right to vote on corporate matters and potentially receive dividends.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair value of the net identifiable assets of the business.