Remmers Corporation, a publicly traded company, was organized on January 1, 2012. It is authorized to issue an unlimited number of no par value $3 noncumulative preferred shares and an unlimited number of no par value common shares. The following share transactions were completed during the company's first year of operations:
Jan. 10 Issued 100,000 common shares for $2 per share.
Mar. 1 Issued 10,000 preferred shares for $52 per share.
May 1 Issued 75,000 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 $55 per share.
Dec. 15 Declared a $36,000 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 2012, including any required closing entries.
(b) Open T accounts and post to the shareholders' equity accounts.
(c) Prepare the shareholders' equity section of the statement of financial position at December 31.