Prepare the entry to record the common share issue on jan

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At December 31, 2020, Shannon Corporation had 500,000 common shares authorized, 100,000 of which had been issued for cash proceeds of $1,900,000. Shannon Corporation is a public corporation reporting under IFRS. The Retained Earnings balance was $1,150,000 and Accumulated Other Comprehensive Income was $1,800,000.

On January 18, 2021, 50,000 common shares were issued at $25 per share. Profit for 2021 was $275,000. No dividends were declared in 2021.

Instructions:

Problem (a) Prepare the entry to record the common share issue on January 18, 2021.

Problem (b) Prepare the Shareholders' Equity section of the balance sheet at December 31, 2021.

Reference no: EM132730780

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