Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Empty Boxes are to be filled in with numbers, I am confused on the process of how to find the values Bramble Mills Ltd. had
Empty Boxes are to be filled in with numbers, I am confused on the process of how to find the values
Bramble Mills Ltd. had the following shareholders' equity at January 1, 2020. $520,000 Preferred shares, 8%, $100 par value, 10,000 shares authorized, 5,200 shares issued 230,000 Common shares, $2 par value, 200,000 shares authorized, 115,000 shares issued Common shares subscribed, 11,200 shares 22,400 Contributed surplus-preferred 26,000 Contributed surplus-common 952,000 Retained earnings 787,000 2,537,400 Less: Common share subscriptions receivable 52,000 Total shareholders' equity $2,485,400 The contributed surplus accounts arose from amounts received in excess of the par value of the shares when issued. During 2020, the following transactions occurred: Equipment was purchased in exchange for 100 common shares. The shares' fair value on the exchange date was $12 per share 1. Sold 1,020 common shares and 110 preferred shares for the lump-sum price of $25,500. The common shares had a market price of $14 at the time of the sale. 2. Sold 3,200 preferred shares for cash at $102 per share 3. 4. All of the subscribers paid their subscription prices into the firm. The common shares subscribed were issued Repurchased and retired 1,020 common shares at $15 per share. Calculate the amount recorded to contributed surplus on a pro-rata basis and round to three decimal places. 5. 6. 7. Net income for 2020 was $252.000. Prepare the shareholders' equity section for the company as at December 31, 2020. (Round average price per share to 3 decimal places, e.g. 5.275 and the final answers to O decimal places, e.g. 5,275.) Bramble Mills Ltd. Shareholders' Equity December 31, 2020 Share Capital Preferred Shares Common Shares Total Share Capital Cantributed Surplus Total Paid-in Capital Retained Earnings Total Shareholders' Equity Bramble Mills Ltd. had the following shareholders' equity at January 1, 2020. $520,000 Preferred shares, 8%, $100 par value, 10,000 shares authorized, 5,200 shares issued 230,000 Common shares, $2 par value, 200,000 shares authorized, 115,000 shares issued Common shares subscribed, 11,200 shares 22,400 Contributed surplus-preferred 26,000 Contributed surplus-common 952,000 Retained earnings 787,000 2,537,400 Less: Common share subscriptions receivable 52,000 Total shareholders' equity $2,485,400 The contributed surplus accounts arose from amounts received in excess of the par value of the shares when issued. During 2020, the following transactions occurred: Equipment was purchased in exchange for 100 common shares. The shares' fair value on the exchange date was $12 per share 1. Sold 1,020 common shares and 110 preferred shares for the lump-sum price of $25,500. The common shares had a market price of $14 at the time of the sale. 2. Sold 3,200 preferred shares for cash at $102 per share 3. 4. All of the subscribers paid their subscription prices into the firm. The common shares subscribed were issued Repurchased and retired 1,020 common shares at $15 per share. Calculate the amount recorded to contributed surplus on a pro-rata basis and round to three decimal places. 5. 6. 7. Net income for 2020 was $252.000. Prepare the shareholders' equity section for the company as at December 31, 2020. (Round average price per share to 3 decimal places, e.g. 5.275 and the final answers to O decimal places, e.g. 5,275.) Bramble Mills Ltd. Shareholders' Equity December 31, 2020 Share Capital Preferred Shares Common Shares Total Share Capital Cantributed Surplus Total Paid-in Capital Retained Earnings Total Shareholders' EquityStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started