On January 1, 2015, Marxsman Ltd. has the following capital account balances:
$1 preferred shares, 500,000 authorized,
124,000 issued and outstanding ..................................... $ 3,480,000
Common shares, unlimited authorized,
2,180,000 issued and outstanding ..................................... 12,640,000
Retained earnings ......................................................... 42,750,000
The following transactions occurred during the year ended December 31, 2015:
Jan. 1 Issued 150,000 common shares for $245,000.
Jun. 30. Declared a semiannual dividend of $254,000, payable on August 15 to the shareholders of record on July 15. Marxsman uses dividend accounts.
Aug. 15. Paid the dividend.
Oct. 31. Declared a share dividend of 5% to shareholders of record on November 15 to be issued on December 15. The market price of the common shares was $17 on the declaration date.
Dec. 15. Issued share dividend.
31. Declared a semiannual dividend of $201,300, payable on February 15 to the shareholders of record on January 15.
31. Prepared the closing entry for the net income of $2,078,000 for the year, and the dividends.
Instructions
1. Journalize the above transactions
2. Prepare the Shareholders' Equity section of the statement of financial position for Marxman Ltd. as at December 31, 2015.
3. Calculate Marxsman's earnings per share for 2015.