D. State what would happen to the equity of Kicking Horse Oil Ltd. after each of the following independent transactions: (a) The founders of the company made an initial investment of $100,000, receiving 100,000 common shares in exchange. (b) The company borrowed $250,000 from a bank. (c) The company listed its shares on the Calgary Stock Exchange and sold 1,000 common shares to the general public for $1,000,000. (d) The company sold 100,000 10% cumulative preference shares to the general public for $100,000.
D. State what would happen to the equity of Kicking Horse Oil Ltd. after each of the following independent transactions: (a) The founders of the company made an initial investment of $100,000, receiving 100,000 common shares in exchange. (b) The company borrowed $250,000 from a bank. (c) The company listed its shares on the Calgary Stock Exchange and sold 1,000 common shares to the general public for $1,000,000. (d) The company sold 100,000 10% cumulative preference shares to the general public for $100,000.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...
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