ITA Ltd. is a grocery store chain operating in the western provinces. The following selected accounts appear in the ledger of ITA Ltd. on May 1, 2015, the beginning of the current fiscal year:
$0.50 preferred shares (10,000,000 shares authorized,
583,000 shares issued and outstanding) .................. $5,830,000
Common shares (unlimited authorized,
35,760 shares issued and outstanding) .................. 92,976
Retained earnings .......................................... 1,027,855
ITA Ltd. does not use dividend accounts. During the year, the corporation completed the following transactions that affected its shareholders' equity.
May 2. Split the common shares 2 for 1.
30. Sold 5,000 preferred shares for $55,000.
Nov. 1. Declared semiannual dividends of $0.25 on the preferred shares and $0.10 on the common shares to shareholders of record on November 20, payable on December 20.
Dec. 20. Paid the cash dividends.
31. Repurchased 10,000 common shares at $1.435 per share.
Apr. 30. Declared semiannual dividends of $0.25 on the preferred shares and $0.10 on the common shares to shareholders of record on May 20, payable on June 20.
30. Recorded the closing entry for the income for the year of $3,766,020.
Instructions
1. Journalize the entries to record the transactions.
2. Prepare the Shareholders' Equity section of the statement of financial position as at April 30, 2016.
3. Calculate basic earnings per share for the year ended April 30, 2016.