1. **State the problem:** Prepare journal entries for issuing and repurchasing shares with given amounts and values. 2. **Journal entry basics:** Debits and credits must balance. Issuing shares increases cash or assets and increases equity (shares). Repurchasing shares decreases cash and equity. 3. **Jan. 1: Issued 10,000 common shares at $6 each.** - Cash received = $10,000 \times 6 = 60,000$ - Debit Cash $60,000$, Credit Common Shares $60,000$ 4. **Mar. 1: Issued 15,000 preferred shares for $45,000 cash.** - Debit Cash $45,000$, Credit Preferred Shares $45,000$ 5. **Apr. 1: Issued 15,000 common shares in exchange for land valued at $40,000$.** - Debit Land $40,000$, Credit Common Shares $40,000$ 6. **July 1: Repurchased 5,000 common shares at $5.75 each.** - Cash paid = $5,000 \times 5.75 = 28,750$ - Debit Common Shares $28,750$, Credit Cash $28,750$ **Final journal entries:** | Date | Account Titles | Debit | Credit | |--------|---------------------|---------|---------| | Jan 1 | Cash | 60,000 | | | | Common Shares | | 60,000 | | Mar 1 | Cash | 45,000 | | | | Preferred Shares | | 45,000 | | Apr 1 | Land | 40,000 | | | | Common Shares | | 40,000 | | July 1 | Common Shares | 28,750 | | | | Cash | | 28,750 | This completes the required journal entries for the transactions.