Gabriellle Ltd

question 152

Essay

Gabriellle 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 $ 23 per share.
Feb 21 Issued 700 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 convertible preferred shares for $ 95 per share.
Sep 10 Issued 5,000 convertible preferred shares for $ 105 per share.
Oct 1 Converted 1,000 preferred shares into common shares. One preferred share is convertible into 10,000 common shares. The fair value of the common and preferred shares are $ 25 and $ 102 respectively.
Instructions
Prepare the journal entries to record the above transactions.

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Definitions:

Profit

The financial gain derived from a transaction or the operation of a business after subtracting expenses.

Inter-Entity Transactions

Transactions that occur between two divisions within the same company, often used for the purpose of allocating costs or revenues between those divisions.

NCI Adjustment

Adjustments made to account for the non-controlling interest's share in the equity of a subsidiary.

Profit

The financial benefit realized when revenue generated from business activities exceeds the expenses and costs.