During Its First Year of Operations, Millwoods Enterprises Inc

question 208

Essay

During its first year of operations, Millwoods Enterprises Inc. had the following transactions related to its common shares:
Jan 5 Issued 5,000 common shares to Michelle Vogel for $ 1 each.
Mar 15 Issued 10,000 common shares in exchange for equipment transferred from Vogel. The equipment was valued at $ 40,000.
Apr 10 Issued 3,500 shares to a consulting firm for management consulting services as settlement of a $ 14,000 invoice.
Sep 30 Issued 4,000 common shares to Renee Vogel for $ 5 each.
Instructions
a) Journalize the share transactions.
b) Calculate the average cost of the common shares of Millwoods Enterprises Inc. at December 31.

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Definitions:

Six-Figure Accuracy

A term indicating a level of precision or accuracy to the nearest hundred thousand in numerical calculations or measurements.

Powers

In mathematics, the term refers to the exponentiation operation, where a number is raised to the power of another number, indicating repeated multiplication.

Six-Figure Accuracy

A term usually used to describe financial calculations or measurements that are accurate to at least 100,000 or within six figures.

Superscript

A character, number, or symbol set slightly above the normal line of text, commonly used in mathematical expressions and references.