Reference no: EM133049891

Question 1 - Left Corporation purchased a vehicle for $124,000 on November 1, 2020, by paying 15% down payment in cash and signing a 5%, 8-month note payable for the balance amount. Interest and principle will be paid back together at the end of the note. Prepare all relevant journal entries.

Question 2 - Left Corporation is authorized to issue 180,000 common shares and 70,000, $3 preferred shares. At Jan 1, 2020, the company's shareholders equity included the below:

19,000 common shares valued at $122,000

8,000 preferred shares valued at $98,000

Retained earnings was $43,000

During 2020 the net profit earned by Left Corp. was $38,000. The company did not issue any dividend during 2020.

Also, during 2020 the company issued the below shares:

On Mar 3, 2020 - 8,500 common shares for $9 each

On Jun 12, 2020 - 3,600 preferred shares for $16 each and

On Oct 8, 2020 - 21,000 common shares for land valued at $190,000.

Prepare the shareholders equity part of the balance sheet in Dec 31, 2020.