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Global Corp., a new U.S.-based company, is interested in financial reporting under international accounting standards (IFRS). They have decided to account for their transactions under both U.S. GAAP and IFRS for a one-year period. At the end of the one-year period, they will prepare their financial statements and notes under each of the methods.

As the accountant, you are responsible for journalizing the transactions and preparing any necessary adjusting entries, ledgers, trial balances, financial statements, footnotes, etc.

January 1,2011

1. Global issues 250,000 shares of $5 par value common stock for a total of $2,000,000.

2. Global issues 25,000 shares of mandatory redeemable preferred stock for $100 per share.

February 15, 2011

3. Global purchases 100,000 inventory items at a cost of $10 per item. Global will use the perpetual method and FIFO, if the methods are allowed. (Global pays cash.)

4. Global purchases land for use as a parking lot for its employees. The purchase price is $200,000. (Global pays cash.)

May 1, 2011

5. Global purchases marketable securities that it plans to hold as \"available for sale\"" securities. Global pays $1

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