Current Attempt in Progress Some of the account balances of Vos Limited at December 31, 2019 are as follows: $ 7 Preferred shares ( 1,800 shares authorized, 1,800 shares issued and outstanding) $ 500,000 Common shares (unlimited authorized, 46,000 shares issued and outstanding) 470,000 Contributed surplus 100,000 Retained earnings 763,000 Accumulated other comprehensive income 21,840 The price of the company's common shares has been increasing steadily on the market; it was $ 20 on January 1, 2020 and advanced to $ 23 by July 1 and to $26 at the end of 2020. The preferred shares are not openly traded but were appraised at $ 119 per share during 2020. Vos follows IFRS and had net income of $ 150,000 during 2020. For the purpose of this question, ignore any dividend entitlement to the preferred shareholders. Part 1 - Your answer is partially correct. The company declared a property dividend on April 1. Each common shareholder was to receive one share of Waterloo Corp. for every 10 shares outstanding. Vos had 7,800 shares of Waterloo (2% of the outstanding shares), and had purchased them in 2015 for $ 68,016. The shares are accounted for using the FV-OCI model. The accumulated other comprehensive income relates only to these shares. The fair value of the Waterloo shares was $ 15 per share on April 1. The property dividend was distributed on April 21 when the fair value of the Waterloo shares was $ 18.00. The Waterloo shares remained at a fair value of $ 18.00 until year end. Prepare the journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to decimal places, e.g. 5,275. Do not round intermediate calculations.) Date Account Titles and Explanation Debit Credit Apr. 1 Unrealized Gain or Loss Unrealized Gain or Loss (To record fair value adjustment) Apr. 1 Dividends 69,000 Property Dividends Payable 69,000 (To record declaration of property dividend) Apr. 1 Accumulated OCI No Entry (To reclassify holding gain) Apr. 21 Property Dividends Payable 69,000 Cash 69,000 Part 2 Your answer is partially correct. On July 1, the company declared a 4% stock dividend at the fair value of the shares to the remaining common shareholders. The stock dividend was distributed July 22. Prepare the journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit July 1 Dividends 42,320 Common Shares 42,320 July 22 Dividends 42,320 Common Shares 42,320 Part 3 Your answer is correct. A shareholder, in an effort to persuade Vos to expand into her city, donated to the company a plot of land with an appraised value of $ 40,000. Prepare the journal entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Land 40,000 Contributed Surplus - Donated Land 40,000 Part 4 Prepare the shareholders' equity section of Vos's SFP at December 31, 2020. (Round answers to 0 decimal places, e.g. 5,275. Do not round intermediate calculations.) Vos Limited Shareholders' Equity December 31, 2020 Share Capital Preferred Shares $ 500,000 Common Shares Total Share Capital Retained Earnings Total Paid-in Capital Accumulated OCI Total Shareholders' Equity $
