Question
Grant Construction Ltd. prepares its reports using IFRS. The following information relates to its shareholders equity on January 1, 2017, the first day of its
Grant Construction Ltd. prepares its reports using IFRS. The following information relates to its shareholders equity on January 1, 2017, the first day of its fiscal year.
$0.50 - noncumulative preferred shares, unlimited number of shares authorized, 100,000 shares issued 1,200,000
Common shares, unlimited number of shares authorized, 1,200,000 shares issued 3,672,200
Contributed surplus - reacquisition of common shares 14,200
Retained earnings 7,250,000
Accumulated other comprehensive income (434,000)
During the year, there were the following transactions related to shares.
- On May 15, 2017, Grand purchased a Caterpillar bulldozer in exchange for 90,000 common shares with a market value of $3.15 per share. The fair value of the bulldozer was $295,400.
- On June 1, 2017, Grants board of directors declared the semi-annual dividend to the preferred shareholders to shareholders of record on June 15, payable June 30.
- The semi-annual dividend to the preferred shareholders is paid on the appropriate date.
- On September 16, 2017, reacquired 40,000 common shares for $139,250 cash.
- On December 15, 2017, Grants board of directors declared the second semi-annual dividend to the preferred shareholders payable December 30, 2017 and a 10% stock dividend to the common shareholders of record on December 16, 2017 payable January 20, 2018. The market price of the common shares at December 15, 2017 was $4.00 per share.
- Reported profit of $1,450,000 for the year.
Journalize each of the transactions
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