Exquisite Jewellery Limited reported the following summarized balance sheet at December 31, 2016: Assets Current assets........................................................................................ $33,400
Question:
Exquisite Jewellery Limited reported the following summarized balance sheet at December 31, 2016:
Assets
Current assets........................................................................................ $33,400
Property and equipment, net................................................................. 51,800
Total assets............................................................................................ $85,200
Liabilities and Equity
Liabilities.............................................................................................. $37,800
Shareholders' equity:
$0.50 cumulative preferred shares, 400 shares issued............................. 2,000
Common shares, 6,000 shares issued.................................................... 23,400
Retained earnings................................................................................ 22,000
Total liabilities and equity................................................................... $85,200
During 2017, Exquisite completed these transactions that affected shareholders' equity:
Feb. 13 Issued 5,000 common shares for $4 per share.
June 7 Declared the regular cash dividend on the preferred shares.
July 24 Paid the cash dividend.
Aug. 9 Declared a 10% stock dividend on the common shares. Market price of the common shares was $5 per share.
Aug. 23 Distributed the stock dividend.
Nov. 20 Issued 200 common shares for $8 per share.
Requirements
1. Journalize Exquisite's transactions. Explanations are not required.
2. Report Exquisite Jewellery Limited's shareholders' equity at December 31, 2017. Net income for 2017 was $27,000.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Req 1 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 2017 Feb 13 Cash 5000 4 20000 Com...View the full answer
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin
