The following selected account balances are in the ledger of Calhoon Junction Inc. on December 1, 2015, the beginning of the current year:
$2.90 preferred shares (1,000,000 authorized,
75,000 shares issued and outstanding)................................. 2,300,000
Common shares (unlimited authorized,
250,000 shares issued and outstanding)............................... 3,650,000
Retained earnings.................................................................. 6,582,000
Calhoon Junction Inc. uses dividend accounts. During the year, the corporation completed the following transactions that affected its shareholders' equity.
a. Issued 10,000 common shares in exchange for equipment with a fair market value of $600,000.
b. Declared semiannual cash dividends of $1.45 per preferred share and $0.80 per common share.
c. Issued 10,000 preferred shares at $68 per share, receiving cash.
d. Paid the dividend declared in (b).
e. Declared a 2:1 common share split.
f. Declared semiannual cash dividends of $1.45 per preferred share and $0.90 per common share.
g. Recorded closing entries. The net income for the year was $5,236,000.
Instructions
1. Journalize the entries to record the transactions. Identify each entry by letter.
2. Prepare a statement of changes in equity for the year ended November 30, 2016.
3. Prepare the Shareholders' Equity section of the statement of financial position for Calhoon Junction Inc. as at November 30, 2016.
4. Calculate the basic earnings per share for the year ended November 30, 2016, assuming a weighted average number of common shares of 510,000.