The following shareholders equity accounts are reported by Branch Inc. on January 1: The following selected transactions
Question:
The following shareholders’ equity accounts are reported by Branch Inc. on January 1:
The following selected transactions occurred during the year:
Instructions
(a) Prepare a chart that shows for each class of shares (1) number of shares issued, (2) total cost, and (3) average cost per share. Enter the January 1 data into the chart.
(b) Prepare journal entries for the transactions. Update the chart in (a) as required for the transactions. After each transaction, determine the number issued, total cost, and average cost per share.
(c) Show how each class of shares will be presented in the shareholders’ equity section of the balance sheet at December 31.
TAKING IT FURTHER Provide possible reasons why Branch Inc. split the common shares and issued a stock dividend.
Step by Step Answer:
Lets begin by preparing the chart for each class of shares with the number of shares issued total cost and average cost per share based on the January 1 data Initial Data January 1 Common Shares Numbe...View the full answer
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
