Kuis Corporation

P11-1A
Gao was organized on January 1,2017. It is authorized to issue 10.000, 8%, $1,000 par value
preference shares, and 500.000 no-par value ordinary shares with a stated value of $20 per share.
The following share transactions were completed during the first year.
Jan 10 issued 100.000 ordinary shares for cash at $48 per share.
Mar 1 issued 5.000 preference shares for cash at $1.050 per share.
April 1 issued 18.000 ordinary shares for land. The asking price of the land was
$980.000. the
fair value of the land was $920.000.
May 1 issued 80.000 ordinary shares for cash at $45 per share.
Aug 1 issued 10.000 ordinary share to attorneys in payment of their bill of $320.000 for
services provided in helping the company organize.
Sept 1 issued 10.000 ordinary shares for cash at $50 per share.
Nov 1 issued 1.000 preference shares for cash at $1.060 per share.
Instructions:
a. Journalize the transaction.
b. post to the equity accounts.

P11-2A
Elston limited had the following equity accounts on January 1,2017: Share capital-ordinary ($5
par) $400.000, share premium-ordinary $200.000, and retained earnings $100.000. In 2017, the
company had following treasury share transactions.
Mar 1 purchased 5.000 share at $9 per share.
June 1 sold 500 shares at $12 per share.
Sept 1 sold 2.500 shares at $10 per share.
Dec 1 sold 1.000 shares at $6 per share.
Elston use the cost method of accounting for treasury shares. In 2017, the company reported net
income of $34.000.
Instructions: journal the treasury shares and prepare the closing entry at December 21, 2017, for
net income