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1) 2) Kit Kate Services Corporation began 2020 with the following account balances: Listen Developments Inc. ended 2019 with Retained Earnings of $75,000. During 2020,
1) 2) Kit Kate Services Corporation began 2020 with the following account balances: Listen Developments Inc. ended 2019 with Retained Earnings of $75,000. During 2020, the company earned net income of $135,000 and declared dividends of $45,000. The company ended 2019 with $35,000 in common shares and $15,000 in $1 preferred shares. Additional common shares were sold in 2020 for $25,000. Complete Listen Developments Inc.'s statement of shareholders' equity for the year ended December 31, 2020. (7 Marks) Common shares, 150,000 shares authorized, 100,000 outstanding Contributed surplus - share repurchase Retained earnings $2,175,000 10,000 750,000 Listen Developments Inc. Statement of Shareholders' Equity For the Year Ended December 31, 2020 In January 2020, Kit Kate Services Corporation reported the following transactions: Total Shareholders' Retained Earnings Equity Jan. 10 20 30 Reacquired 5,000 of its own shares for $25 per share. Sold 3,000 of the reacquired shares for $28 per share. Reacquired 2,000 of its own shares for $20.75 per share. Common Shares Preferred Shares Balance, December 31, 2019 Instructions: Record journal entries for the above transactions (no explanations required) (8 Marks). Balance December 31, 2020
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