Balance Sheet

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HOLLAND INCORPORATED

Score: $\frac{40}{99}$

Shareholders' Equity

December $31,2019$

$\backslash$table$[[,,,],[1,$Contributed Capital:,,$],[2,$Preferred stock,$,$$$250,{000\mathrm{.}00}^{}$Holland Incorporated$$s records provide the following information on January $1,2016$:

Preferred stock, $$50$ par $(5,000$ shares authorized, issued, and outstanding$)$ $$250,000$

Common stock, $$10$ par $(20,000$ shares authorized, $10,000$ shares issued and outstanding$)100,000$

Additional paid$-$in capital on preferred stock $50,000$

Additional paid$-$in capital on common stock $80,000$

Retained earnings $95,000$

During $2016,$ the following transactions were recorded by Holland:

$1.$ Reacquired $250$ shares of preferred stock for $$53$ per share.

$2.$ Reacquired $500$ shares of common stock for $$20$ per share.

$3.$ Sold $200$ shares of the common stock acquired in Transaction $2$ for $$27$ per share.

$4.$ Sold $250$ shares of preferred stock acquired in Transaction $1$ for $$59$ per share.

$5.$ Sold $100$ shares of the common stock acquired in Transaction $2$ for $$18$ per share.

Required:

$1.$ Prepare journal entries to record the stock transactions of Holland assuming it uses the cost method of accounting for treasury stock.

$2.$ Prepare the shareholders$$ equity section of the Holland balance sheet at December $31,2016,$ assuming $2016$ net income was $$30,000$ and dividends distributed were $$10,000.$

$3.$ Next Level Assume that Holland is using IFRS. At the end of $2016,$ Holland revalued its property, plant, and equipment upward by $$40,000.$ Discuss how Holland$$s shareholders$$ equity items would be different under IFRS, and then, based on your answer, repeat Requirement $2.$