Prepare the Shareholders' Equity Section from Transaction Data In 2010, the Following Events Occurred:
Farrell Corporation Issued 1,000

question 83

Essay

Prepare the shareholders' equity section from transaction data.
Shown below is the shareholders' equity section of Farrell Corporation's balance sheet at December 31, 2009:
$\begin{array}{c}\begin{array}{lll} \text {Shareholders' equity.}\\ \text {Ordinary Share, \$3 par value, 200,000 shares authorized, ?? share sissued}\\ \text { Share premium: ordinary}\\\\ \text {Total Issued and fully paid capital }\\ \text {Retained earning:}\\\\ \text {Total shareholders' equity} \end{array}\begin{array}{lll}\\\$ 300,000 \\450,000 \\\\\$750,000 \\650,000 \\\\\$ 1,400,000\end{array}\end{array}$

In 2010, the following events occurred:
Farrell Corporation issued 1,000 $3 par ordinary shares in exchange for land. Although several real estate appraisers disagree on the value of the land, Farrell 's share is currently selling on a share exchange for $32 per share.
Farrell Corporation issued 3,000 5% cumulative preference share, $100 par value, for $108 per share.
The board of directors declared a dividend of $1 per share on the ordinary share.
Farrell's profit for 2010 is $375,000.
Instructions: Complete in good form the shareholders' equity section of a balance sheet prepared for Farrell Corporation at December 31, 2010:

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Definitions:

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