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Gecko Inc. has the following balances in its shareholders' equity section of the balance sheet. Shareholders' Equity Gecko Inc. Balance Sheet (partial) As at December
Gecko Inc. has the following balances in its shareholders' equity section of the balance sheet. Shareholders' Equity Gecko Inc. Balance Sheet (partial) As at December 31, 2019 Contributed Capital Preferred Shares, 10% noncumulative, 40,000 shares authorized, 12,000 shares issued and outstanding Common Shares, 1,000,000 shares authorized, 75,000 shares issued and outstanding Total Contributed Capital Retained Earnings Total Shareholders' Equity The following transactions occurred during the year 2020. Jan 9 Jun 7 Sep 8 Oct 13 Dec 13 Dec 31 $60,000 75,000 135,000 147,525 $282,525 Issued 20,000 common shares for $4.50 per share and 3,000 preferred shares for $7 per share Issued 4,000 preferred shares in exchange for equipment valued at $26,000. The fair value of the shares could not be readily determined. Issued 12,000 common shares for $4.75 per share Declared $25,000 of cash dividends. The company uses the cash dividends account to record dividends. Paid the dividends declared on October 13 Estimated income tax expense of $31,000. Net income after income tax was $89,000. Required a) Prepare the journal entries to record the above transactions for 2020
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