Organic Health Inc is a distributor of health food products in the Toronto area The following account balances appear on the balance sheet of Organic Health Inc $2 preferred shares (100,000 shares authorized, 20,000 shares issued and outstanding), $2,000,000, Common shares (300,000 shares authorize...

a 1 Retained Earnings 250000 Common Share Dividends Distributable 25 ...

Organic Health Inc. is a distributor of health food products in the Toronto area. The following account

Question:

Organic Health Inc. is a distributor of health food products in the Toronto area. The following account balances appear on the of Organic Health Inc.: $2 preferred shares (100,000 shares authorized, 20,000 shares issued and outstanding), $2,000,000, Common shares (300,000 shares authorized, 100,000 shares issued and outstanding), $10,000,000, and Retained earnings, $45,000,000. The board of directors declared a 2% share when the market price was $125 per share.
a. Journalize the entries to record
(1) The declaration of the
(2) The issuance of the share certificates.
b. Determine the following amounts before the share was declared:
(1) Total contributed capital,
(2) Total retained earnings,
(3) Total shareholders' equity.
c. Determine the following amounts after the share was declared and closing entries were recorded at the end of the year:
(1) Total contributed capital,
(2) Total retained earnings,
(3) Total shareholders' equity.
Balance Sheet
Balance 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...