Remmers Corporation, a publicly traded company, was organized on January 1, 2015. It is authorized to issue

Question:

Remmers Corporation, a publicly traded company, was organized on January 1, 2015. It is authorized to issue an unlimited number of $3 noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the company's first year of operations:

Jan. 10 Issued 500,000 common shares for $2 per share.

Mar. 1 Issued 10,000 preferred shares for $50 per share.

May 1 Issued 50,000 common shares for $3 per share.

July 24 Issued 16,800 common shares for $60,000 cash and used equipment. The equipment originally cost $15,000. It now has a carrying amount of $7,500 and a fair value of $8,000. The common shares were trading for $4 per share on this date.

Sept. 1 Issued 5,000 common shares for $5 per share.

Nov. 1 Issued 2,000 preferred shares for $50 per share.

Dec. 15 Declared a $36,000 cash dividend to the preferred shareholders, to shareholders of record on December 31, payable on January 10.

31 Reported profit of $650,000 for the year.

Instructions

(a) Record the above transactions for 2015, including any required entries to close dividends and profit to Retained Earnings.

(b) Open T accounts and post to the shareholders' equity accounts.

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...