6. A company is authorized to issue 50,000 $50 par value, 8%, cumulative, fully participa preference shares, and 750,000 $5 par value ordinary shares. Prepare journal entries to re
the following selected transactions that occurred during the company's first year
operations:
May 5
July 20
Dec 20
Exchanged 2,000 preference shares for a building with a market value of
$135,000
Sold 1,550 preference shares for $50 cash per share
Sold 1,000 preference shares at $55 cash per share.
7. A company reports the following shareholders' equity:
Pad-in Capital:

Reliability and validity reliability and validity are two important considerations that must be made with any type of data collection. reliability refers to the ability to consistently produce a given result. in the context of psychological research, this would mean that any instruments or tools used to collect data do so in consistent, reproducible ways. unfortunately, being consistent in measurement does not necessarily mean that you have measured something correctly. to illustrate this concept, consider a kitchen scale that would be used to measure the weight of cereal that you eat in the morning. if the scale is not properly calibrated, it may consistently under- or overestimate the amount of cereal that’s being measured. while the scale is highly reliable in producing consistent results (e. g., the same amount of cereal poured onto the scale produces the same reading each time), those results are incorrect. this is where validity comes into play. validity refers to the extent to which a given instrument or tool accurately measures what it’s supposed to measure. while any valid measure is by necessity reliable, the reverse is not necessarily true. researchers strive to use instruments that are both highly reliable and valid.