E15-15

Sept. 5 Declared the quarterly cash dividend to prefered shareholders of record Dec. 5 Declared the quarterly cash dividend to preferred shareholders of record on June 20, payable July 1 on September 20 on December 20, payable January 1 , payable October 1 31 Net income for the year was $374,000. Instructions (a) Prepare journal entries to record the transactions above, as well as the closing entries for Income Summary and Dividends (b) Post the entries to the shareholders' equity and dividends T accounts. (c) Prepare the statement of changes in shareholders' equity for the year. (d) Prepare the shareholders' equity section of the statement of financial position at December 31 (e) Prepare the financing activities section of the statement of cash flows for the year ended December 31. 2,3, "E15-15 (Shareholders' Equity Section) Radford Corporation's charter authorized 1 million shares of S11 par 5) value common shares, and 300,000 shares of 6% cumulative and non-participating preferred shares, with a par value of $100 per share. The corporation made the following share transactions through December 31, 2017: 300,000 com- mon shares were issued for $3.6 million and 10,000 preferred shares were issued for machinery valued at $1,475,000. subscriptions for 10,500 common shares have been taken, and 30% of the subscription price of $16 per share has been collected. The shares will be issued upon collection of the subscription price in full. In addition, 10,000 common G shares have been repurchased for $15 and retired. The Retained Earnings balance is $180,000 before considering the transactions above. Instructions (a) Prepare the shareholders' equity section of the statement of financial position in good form. CE (b) Repeat part (a) assuming the common shares and preferred shares are no par (e) Discuss the alternative presentations of the Share Subscriptions Receivable account. Would the presentation of the receivable affect the book value or the rate of return on shareholders' equity? 6) E15-16 (Equity Items on Statement of Financial Position) The following are selected transactions that may affect