On January 1, 2014, Copeland Ltd. (a public company) had the following shareholders' equity accounts:
Preferred shares, $5-non-cumulative, no par value, unlimited number authorized, none issued ..... -0-
Common shares, no par value, unlimited number authorized, 800,000 issued ................ $5,600,000
Retained earnings ........................................................................................ 1,323,000
Accumulated other comprehensive income ............................................................ 142,000
The following selected transactions occurred during 2014:
Jan. 2 Issued 100,000 preferred shares at $25 per share.
Mar. 5 Declared the quarterly cash dividend to preferred shareholders of record on March 20, payable April 1.
Apr. 18 Issued 130,000 common shares at $11 per share.
June 5 Declared the quarterly cash dividend to preferred shareholders of record on June 20, payable July 1.
Sept. 5 Declared the quarterly cash dividend to preferred shareholders of record on September 20, payable October 1.
Dec. 5 Declared the quarterly cash dividend to preferred shareholders of record on December 20, payable January 1.
Dec. 31 Net income for the year was $374,000.
Instructions
(a) Prepare journal entries to record the transactions above.
(b) Post the entries to the shareholders' equity T accounts.
(c) Prepare the statement of changes in shareholders' equity for the year.
(d) Prepare the shareholders' equity section of the statement of financial position at December 31.
(e) Prepare the financing activities section of the statement of cash flows for the year ended December 31.