Reference no: EM132563199

Petra Corporation's, widely held, public company. Information about its shareholders equity is as follows:

Petra Co.

Shareholders' equity

December 31, 2019

Preferred shares, no par value, 8% cumulative, 1,000 issued and outstanding $100,000

Common shares, 100,000 authorized, 12,000 issued and outstanding $180,000

Contributed Surplus-common shares $6,000

Contributed Surplus-Preferred shares $50,000

Retained earnings $40,000

Instructions:

Question 1- create all journal entries for the following transaction (assuming all occurred during 2020):

A) Jan 7, Issued 3,500 common shares at $19 per share for cash

B) Feb 12, Issued 1,000 preferred shares 8% cumulative at $150 each

C) May 8, bought and cancelled 1000 common shares at $25 per share

D) June 6 Issued 1,500 common shares at $22 per share for cash

E) June 20, bought and cancelled 2,000 common share at $40 per share