Early in the year bill sharnes and several friends organized a corporation called sharnes communications, inc. the corporation was authorized to issue 50,000 shares of $100 par value, 10 percent cumulative preferred stock and 400,000 shares of $2 par value common stock. the following transactions (among others) occurred during the year:

jan. 6
issued for cash 20,000 shares of common stock at $14 per share. the shares were issued to sharnes and 10 other investors.

jan. 7
issued an additional 500 shares of common stock to sharnes in exchange for his services in organizing the corporation. the stockholders agreed that these services were worth $7,000.

jan. 12 issued 2,500 shares of preferred stock for cash of $250,000.
june 4
acquired land as a building site in exchange for 15,000 shares of common stock. in view of the appraised value of the land and the progress of the company, the directors agreed that the common stock was to be valued for purposes of this transaction at $15 per share.

nov. 15
the first annual dividend of $10 per share was declared on the preferred stock to be paid december 20.

dec. 20 paid the cash dividend declared on november 15.
dec. 31
after the revenue and expenses were closed into the income summary account, that account indicated a net income of $147,200.

instructions
a.
prepare journal entries in general journal form to record the above transactions. include entries at december 31 to close the income summary account and the dividends account.

b.
prepare the stockholders' equity section of the sharnes communications, inc., balance sheet at december 31.

Table 1. shows the expected demand for the dvd at different suggested donation levels, and they can act as a single-price monopolist if they choose to. thereceipts will be used to fund gstcg supplies for their data collection and conservation work. at the end of each sea turtle nesting season, any excess funds are donated by the gstcg to a local non-profit sea turtle research and rehabilitation facility. table 1 suggested anticipated total marginal profit donation per number of dvd revenue revenue dvd request requests $19.00 0 $15.00 2 $9.50 4 $7.75 10 $3.00 15 $0.00 20 a. complete table 1 by computing the total revenue, marginal revenue, and profit columns. b. the president wants the gstcg to provide videos to generate the most possible donations (total revenue). what price, if any, is the president of the gstcg favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. c. the education outreach committee wants the gstcg to provide videos to the highest possible number of people. what price, if any, is the educational outreach committee favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. d. the treasurer of the gstcg wants the dvd program to be as efficient as possible so that the marginal revenue equals marginal cost. what price, if any, is the treasurer favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. e. the fundraising committee wants the dvd program to generate as much profit in donations as possible. what price, if any, is the fundraising committee favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer.