P10-80A. (Learning Objectives 2, 3, 4: Accounting for shares issuance, dividends, and treasury shares) Moscow Jewelry Company reported the following summarized Balance Sheet at December 31, 20X6:

During 20X7, Moscow completed these transactions that affected shareholders’ equity:

Requirements 1. Journalize Moscow’s transactions. Explanations are not required.
2. Report Moscow’s shareholders’ equity at December 31, 20X7. Net income for 20X7 was $28,000.

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Assets Current assets.... Property and equipment, net. Total assets..... Liabilities and Equity Liabilities........... Shareholders' equity: $0.70 cumulative preference share, $5 par, 300 shares issued... Ordinary share, $4 par, 6,500 shares issued......... Paid-in capital in excess of par Retained earnings......... Total liabilities and equity. $ 33,600 74,000 $107,600 $ 37,300 1,500 26,000 17,800 25,000 $107,600