Chapter 6
Corporations: Contributed Capital and Dividends
268
AP-6A (
4
)
Swanson Inc. was formed on January 1, 2016 and issued 10,000 common shares for $2 per
share on that date. During the year the following additional share transactions occurred.
May 15 Issued 4,500 common shares for $2.75 per share.
Jul 1 Issued 5,000 common shares in exchange for equipment with a fair value of $14,500.
Sep 26 Issued 2,800 common shares for $2.50 per share.
Required
a) Prepare the journal entries to record the above transactions (including the entry to record
the formation of Swanson Inc.).
Date
Account Title and Explanation
Debit
Credit
b) Determine the total number and value of common shares issued and outstanding as at
December 31, 2016 by completing the following table.
Date
# of shares issued
$ per share
Total ($)
Jan 1
10,000
$2.00
May 15
4,500
$2.75
Jul 1
5,000
$14,500
Sep 26
2,800
$2.50
Total Dec 31, 2016
