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Duffy Dog Corporation, a publicly traded company, is authorized to issue 190,000 $4 cumulative preferred shares and an unlimited number of common shares. On
Duffy Dog Corporation, a publicly traded company, is authorized to issue 190,000 $4 cumulative preferred shares and an unlimited number of common shares. On January 1, 2018, the general ledger contained the following shareholders' equity accounts: Preferred shares (7,800 shares issued) Common shares (77,000 shares issued) Contributed surplus Retained earnings Accumulated other comprehensive income $421,200 1,078,000 23,100 864,000 10,100 The following equity transactions occurred in 2018: Feb. 6 Issued 10,200 preferred shares for $622,200. Apr. 6 Issued 22,000 common shares for $605,000. 27 Reacquired and retired 2,700 common shares at $16 per share. May 29 Declared a semi-annual cash dividend to the preferred shareholders of record at June 12, payable July 1. Aug. 22 Issued 8,400 common shares in exchange for a building. At the time of the exchange, the building was valued common shares at $149,000. $164,700 and the Dec. 14 The board of directors decided there were insufficient funds to declare the semi-annual dividend to the preferred shareholders. 31 Net income for the year was $570,000. reb. o Apr. 6 Apr. 27 May 29 June 12 July 1 Aug. 22 Dec.14 Preferred Shares Cash Common Shares Common Shares Contributed Surplus Cash Dividends Declared Dividends Payable No Entry No Entry Dividends Payable Cash Buildings Common Shares No Entry 605000 74250 36000 0 36000 164700 0 622200 605000 31050 43200 36000 0 36000 164700 Date Account Titles and Explanation Dec. 31 Income Summary Retained Earnings (To close net income/(loss).) Dec. 31 Dividends Declared Dividends Payable (To close dividends.) eTextbook and Media Debit 570000 Credit 570000
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