At 1 Jul 20X4 a company’s capital and share premium account of a company were as follows: Ordinary share capital $75,000 (300,000 shares of 25c each) Share premium account $200,000 In the year ended 30 June 20X5 the following event took place: 1.On 1 January 20X5 the company made a rights issue of 1 share for every 5 held at $1.20 per share 2.On 1 April 20X5 the company made a bonus issue of 1 share for every 3 in issue at that time, using the share premium account to do so. What are the correct balance on the company’s capital and share premium account at 30 June 20X5? Ordinary share capital   Share premium account A $120,000                            $227,000 B $120,000                            $137,000 C $460,000                            $287,000 D $480,000                            $137,000

Sierra Corporation engaged in the following share transactions in the first quarter of their fiscal year: 19 Issued 5,500 common shares for cash of $11.50 per share. 3 Sold 2,500 $1.50 Class A preferred shares for $14,000 cash to new investors. Received inventory valued at $30,000 and vehicles with market value of $22,000 for 5,200 common shares. Jul. Aug. 11 Sep. 15 Issued 3,500 $2.00 Class B preferred shares for $14.00 per share. Required 1. Journalize the transactions. Explanations are not required. 2. How much contributed capital did these transactions generate for Sierra Corporation? Requirement 1. Journalize the transactions. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) July 19. Issued 5,500 common shares for cash of $11.50 per share. Journal Entry Date Jul. 19 Accounts Debit Credit

entries: Begin operations on 1/1/2012 with issuance of 10000 shares each at $15 each

Visno