On January 1, 2014, Mandy Merchandise Ltd

question 109

Essay

On January 1, 2014, Mandy Merchandise Ltd. has 25,000 common shared issued for a total of $62,500, and no other shares or contributed capital. During 2014, Mandy had the following transactions:
Jan 15 Issued 15,000 common shares for $2.50 each.
Mar 31 Settled an account for legal expenses by issuing 2,500 shares. The value of the legal services was $5,000.
Sep 30 Issued 9,000 shares in exchange for equipment with a fair value of $22,500.
Instructions
a. Record the transactions.
b. Calculate the total number issued and average cost per share of the common shares at the end of 2014.

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Definitions:

Expected Return

The anticipated amount of return on an investment, calculated based on probabilities of various outcomes, including gains or losses.

Indefinitely

Indefinitely means for an unspecified or unlimited duration, often indicating a period without a foreseeable end.

Last Dividend

The most recent distribution of company earnings to shareholders, expressed as a dollar per share value.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that has priority over common stock dividends but typically does not have voting rights.