Question 2 The articles of incorporation...

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Question 2
The articles of incorporation from the province of Alberta authorize Chrome Canoes Inc (CCI) to issue 12,000 shares of $9 preferred shares and 120,000 common shares. In the first month, CCI completed the following transactions:

06-Oct-21	Issued 1,200 common shares to the lawyer for assistance with incorporating the company. The lawyers fee was $12,000 and should be expensed to professional fees expense.



09-Oct-21	Issued 4,000 common shares to Jerry Spence and 16,000 shares to Sheila Markle in return for cash equal to the shares market price of $15 per share. Spence and Markle are executives of the company.



10-Oct-21	Issued 500 preferred shares to acquire a patent with a fair value of $50,000

Required:
1	Record the journal entries to record the above transactions, descriptions are not required.


2	Prepare the shareholders' equity section of CCI's balance sheet. Assume the ending Retained Earnings is a credit balance of $41,000

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