a.) The partnership of Nuan Zhang and Jen Kwok needed additional capital to expand into new markets, so the business incorporated as Platinum Services Inc. The articles of incorporation under the Canada Business Corporations Act authorize Platinum Services Inc. to issue 800,000

$3.00 preferred shares and 2,000,000 common shares. In its first year, Platinum Services Inc. completed the following share-related transactions:

2020
Aug.	2		Paid incorporation fees of $10,500 and paid legal fees of $16,500 to organize as a corporation.
	2		Issued 24,000 common shares to Zhang and 29,000 commons shares to Kwok in return for cash. Zhang paid $180,000 cash, and Kwok paid $217,500 cash.
Dec.	10		Issued 2,400 preferred shares to acquire a computer system with a market value of $192,000.
	16		Issued 19,000 common shares for cash of $266,000.

Required

1.	Record the transactions in the general journal.
2.	Prepare the shareholders' equity section of the Platinum Services Inc. balance sheet at December 31, 2020. The ending balance in Retained Earnings is $140,000.

b.) Rollins Inc. was organized in 2019. At December 31, 2019, Rollins Inc.'s balance sheet reported the following shareholders' equity account information:

Shareholders' Equity
	Preferred shares, $5.00, 40,000 shares authorized, none issued	$0
	Common shares, 1,600,000 shares authorized, 9,000 shares issued and outstanding	13,500
	Retained earnings (Deficit)			-95,000

Answer the following questions and make journal entries as needed:

1.	What does the $5.00 mean for preferred shares? If Rollins Inc. issues 3,900 preferred shares, how much in cash dividends will it expect to pay?
2.	At what average price per share did Rollins Inc. issue the common shares during 2019?
3.	Were first-year operations profitable? Give your reason.
4.	Journalize the share transactions which took place during 2020. Explanations are not required.
Feb. 15	Issued for cash 2,700 preferred shares at $20.00 per share.
April 2	Issued for cash 6,600 common shares at a price of $3.00 per share.
June 1	Issued 140,000 common shares to acquire a building valued at $400,000.
Dec. 31	Net income for the year was $240,000, and the company declared no dividends. Make the closing entry for net income.
5.	Prepare the shareholders' equity section of the Rollins Inc. balance sheet at December 31, 2020.

c.) Incredible day Corporation has 50,000 $0.45 preferred shares and 605,000 common shares issued and outstanding. During a three-year period, IncredibleDay Corporation declared and paid cash dividends as follows: 2017, $0; 2018, $122,000; and 2019, $270,000.

1.	Compute the total dividends to preferred shares and common shares for each of the three years if
	a.	preferred shares are noncumulative.
	b.	preferred shares are cumulative.
2.	For requirement 1b, record the declaration of the 2019 dividends on December 22, 2019, and the payment of the dividends on January 12, 2020.

d.)Assume Lotix Wireless Inc. completed the following selected transactions during the year

2020:

May	19		Declared a cash dividend on the $11.00 preferred shares (5,500 shares outstanding). Declared a $2.60 per share cash dividend on the 450,000 common shares outstanding. The date of record was June 2, and the payment date was June 25.
Jun.	25		Paid the cash dividends.
Jul.	7		Split the company's 450,000 common shares 2 for 1; one new common share was issued for each old share held.
Aug.	29		Declared a 20 percent stock dividend on the common shares to holders of record on September 8, with distribution set for September 19. The market value was $36.00 per common share.
Sep.	19		Issued the stock dividend shares.
Nov.	6		Repurchased 5,000 shares of the company's own common shares at $44.00 per share. They had an average issue price of $29.00 per share.

Required

Record the transactions in the general journal.

e.) Nepal Grocery Inc.'s balance sheet showed the following account information at November 30, 2019; 250,000 common shares authorized, with 75,000 shares issued, a Common Shares balance of $187,500, and the Retained Earnings account had a credit balance of $150,000.

During 2020, the company completed the following selected transactions:

Mar.	15		Repurchased 10,000 of the company's own common shares at $2.75 per share.
Apr.	29		Declared a 5 percent stock dividend on the 65,000 outstanding common shares to holders of record on May 2, with distribution set for May 16. The market value of Nepal's common shares was $6.00 per share.
May	16		Issued the stock dividend shares.
Nov.	19		Split the common shares 2 for 1 by issuing one new share for each old share held on December 30, 2020.
	30		Earned net income of $155,000 during the year.

Required

1. Record the transactions in the general journal. Explanations are not required.

2. Prepare the shareholders' equity section of the balance sheet at November 30, 2020.

3. Calculate the average issue price on November 30, 2020. Assume no shares were issued or repurchased after November 19, 2020.

f.) Cullen Communication Inc. had the following shareholders' equity information on December 31, 2019:

Contributed capital
Preferred shares, $2.00, cumulative (1 year in arrears),
liquidation price of $20, 100,000 shares authorized,
16,000 shares issued and outstanding	$256,000
Common shares, unlimited number of shares
authorized, 25,500 shares issued and outstanding	229,500
Total contributed capital	485,500
Retained earnings	570,000
Total shareholders equity	$1,055,500

The following transactions took place during 2020:

Jan. 14		Declared a $100,000 cash dividend, payable on March 1 to the shareholders of record on February 1. Indicate the amount payable to each class of shareholder.
Feb. 28		Issued 18,000 common shares for $7.00 per share.
Mar. 1		Paid the cash dividend declared on January 14.
Apr. 1		Declared a 15 percent stock dividend on the common shares, distributable on May 2 to the shareholders of record on April 15. The market value of the shares was $7.20 per share.
May 2		Distributed the stock dividend declared on April 1.
Jul. 4		Repurchased 4,600 of the company's own common shares at $7.80 per share.
Sep. 2		Issued 3,400 common shares for $8.30 per share.
Nov. 2		Split the common shares 2 for 1.
Dec. 31		Reported net income of $190,000. Closed the Income Summary account.

Required

1.	Record the transactions in the general journal.
2.	Prepare the statement of shareholders' equity for the year ended December 31, 2020.

g.) Renway Environmental Products Inc. (REPI) began 2020 with 2.4 million common shares issued and outstanding for $6.0 million. Beginning Retained Earnings was $5.0

million. On February 26, 2020, REPI issued 100,000 common shares at $5.00 per share. On November 16, 2020, when the market price was $6.50 per share, the board of directors declared a 20 percent stock dividend, which was distributed on December 20, 2020. Net income for the year was $700,000.

Required

1.	Make the journal entries for the issuance of shares for cash and for the 20 percent stock dividend.
2.	Prepare the company's statement of retained earnings for the year ended December 31, 2020.