Phillips Electronics Inc. supplies television and audio equipment to consumers. The shareholders' equity account balances as at May 1, 2015, are shown below:
$4 preferred shares (1,000,000 authorized,
178,000 issued and outstanding) . . . . . . . . . . . . . . . . . . . . . . . . $ 9,434,000
Common shares (unlimited authorized,
1,458,600 issued and outstanding) . . . . . . . . . . . . . . . . . . . . . . . 33,548,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,156,845
Accumulated other comprehensive income . . . . . . . . . . . . . . . 0
Following are some selected transactions affecting the shareholders' equity during the year:
May 3. Declared quarterly dividends of $235,000 to be paid July 31, to the share- holders of record on June 28. Phillips Electronics uses a cash dividends account.
Jul. 15. Issued 32,000 preferred shares for $54 per share.
31. Paid the cash dividends.
Aug. 5. Declared quarterly dividends of $346,000 to be paid October 31, to share- holders of record on September 24.
Oct. 31.Paid the cash dividends.
Nov. 4. Issued 400,000 common shares for $25 per share.
Nov. 7. Declared quarterly dividends of $534,000 to be paid January 31, to shareholders of record on December 21.
Jan. 31. Paid the cash dividends.
Feb. 15. Declared quarterly dividends of $625,000 to be paid April 30, to shareholders of record on March 20. Paid the cash dividends.
Apr. 30. Prepared the year-end closing entries for a loss of $365,923 and other compre- hensive income of $89,421. Phillips Electronics uses the income summary account when preparing the closing entries
Instructions
1. Journalize the transactions.
2. Prepare a statement of changes in equity.
3. Prepare the shareholders' equity section of the balance sheet as at April 30, 2016.