Solid Ltd Was Incorporated on January 4, 2021 and Is Authorized

question 150

Essay

Solid Ltd. was incorporated on January 4, 2021 and is authorized to issue an unlimited number of common shares and an unlimited number of $ 5 noncumulative preferred shares. The company entered into the following transactions during the year:
Jan 6 Issued 9,000 common shares for $ 12 per share.
Jan 10 Issued 450 common shares to the company's accountants as payment for a bill of $ 6,000 for services performed in helping the company to incorporate. The most recent value of Solid's shares was on the issuance dated January 6.
Mar 22 Issued 400 convertible preferred shares for $ 52 per share.
May 1 Issued 1,000 convertible preferred shares for $ 68 per share.
Dec 12 Converted 500 preferred shares into common shares. One preferred share is convertible into 10 common shares. The fair value of the common and preferred shares are $ 26 and $ 72 respectively.
Instructions
Prepare the journal entries to record the above transactions.
a) Prepare the journal entries to record the above transactions.
b) Prepare a partial balance sheet for Solid Company at December 31, 2021 highlighting the shareholders' equity section. Assume the company reported net income of $ 78,000 in its first year of operations.

Recognize the importance of catalysts in achieving chemical equilibrium and influencing reaction rates without being consumed.

Understand the principles and legal consequences of dividing agreements into legal and illegal parts.

Recognize the impact of enforcing agreements that violate statutes and the legislative intent behind statutory prohibitions.

Distinguish between regulatory statutes and revenue-raising statutes and their implications for licensing and the enforceability of contracts.

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Definitions:

Political Battles

Conflict or struggles for power, influence, or resources within organizational, governmental, or societal contexts.

Fundamental Attribution Error

The tendency to overestimate the effect of personality or disposition and underestimate the effect of the situation on other people's behavior.

Self-Serving Bias

The tendency to attribute positive outcomes to one's own actions and negative outcomes to external factors.

Attribution Process

The mental operation individuals go through to explain the causes of behavior and events, including their own and others'.