Demo_for_Chapter_11 - DemoProblemforChapter11 Question#1

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Demo Problem for Chapter 11 Question #1 This case focuses on the organization and operations for the first year of  Shelly Corporation, which was organized by 10 local entrepreneurs on  January 1, 2003, for the purpose of operating a business to sell various  supplies to hotels. The charter authorized the following capital stock: Common stock, no-par value, 20,000 shares Preferred stock, 5 percent, $100 par value, 5,000 shares The laws of the state specify that the legal capital for no-par stock is  the full sale amount. The following summarized transactions, selected from 2003, were  completed on the dates indicated: a. Jan. Sold   a   total   of   8,000   shares   of   common   stock   to   the   10  entrepreneurs for cash at $50 per share. Credit the Common  Stock account for the total issue amount. b. Feb. Sold 2,000 shares of preferred stock at $102 per share; cash  collected in full.
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This note was uploaded on 11/03/2011 for the course AEM 2210 at Cornell University (Engineering School).

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Demo_for_Chapter_11 - DemoProblemforChapter11 Question#1

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