Susan Incis Authorized to Issue 70,000,$5,cumulative,preferred Shares,and an Unlimited Number of of Common

question 76

Essay

Susan Inc.is authorized to issue 70,000,$5,cumulative,preferred shares,and an unlimited number of common shares.Prepare journal entries to record the following transactions that occurred during the first 3 months of operations:

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Definitions:

Truth-In-Lending Act

A U.S. federal law designed to protect consumers in their dealings with lenders and creditors, ensuring clear disclosure of loan terms and costs.

Cease-And-Desist Order

An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.

Federal Trade Commission

An independent agency of the United States government, established to prevent unfair business practices and promote consumer protection.

Environmental Protection Agency

A U.S. federal agency responsible for the protection of human health and the environment by writing and enforcing regulations based on laws passed by Congress.