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ORIGINAL OCTAVE INC. Shareholders' Equity December 31, 2011 Share capital Preferred shares, no par value,...

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ORIGINAL OCTAVE INC. Shareholders' Equity December 31, 2011 Share capital Preferred shares, no par value, $8. cumulative, and participating (20,000 authorized: 1,000 issued and outstanding) Common shares, no par value (1,000,000 authorized: 40,000 issued and outstanding) Contributed capital, preferred share retirement $100.000 500,000 20,000 620,000 280,000 $900,000 Retained earnings Shareholders' equity The preferred share dividend was not paid in 2011. Several transactions affecting shareholders' equity took place during the fiscal year ended December 31, 2012, and are summarized in chronological order as follows. 1. Exchanged 10,000 common shares for a prototype piano tuning machine. The machine was appraised at $110,000 On the transaction date. Oor's shares were actively trading at $10 per share. 2. Purchased and retired 10,000 common shares at $15 per share. 3. Paid the annual dividend on the preferred shares. The common shares were then paid a $2 per share dividend. Instructions Prepare journal entries for each of the three transactions

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