Hackenback Ltd. began operations in 2016. Its fiscal year-end is December 31. Components of the condensed balance sheet as at December 31, 2018, are as follows:
Please use the following options to fill in the blanks above:
Options for part b are:
Options for part c are:
Options for part d are:
Data table January 1: Issued 10,000 preferred shares with cumulative dividends of $3 per share. Proceeds were $150,000, or $15 per share. Jan. 1, 2019 Accounts July 1: Repurchased and cancelled 30,000 common shares at a cost of $8 per share. July 1, 2019 Accounts Net income for the year was $2,200,000. Common shares Contributed surplus - common shares, from repurchase and resales Contributed surplus - preferred shares, from repurchase and resales Dividends payable on common shares Dividends payable on preferred shares Income summary Preferred shares Retained earnings Treasury shares - common Treasury shares - preferred Requirement b. Prepare the equity section of the balance sheet as at December 31,2019 , including any notes that would be required. 3egin by preparing the equity section of the balance sheet at December 31,2019 . Bonds payable-7\% due 2019 Common shares-2,000,000 authorized, 150,000 issued and outstanding Common shares-2,000,000 authorized, 180,000 issued and outstanding Contributed surplus-common shares, from share repurchases and resales Contributed surplus-preferred shares, from share repurchases and resales Current liabilities Preferred shares-\$3 cumulative dividend, 10,000 issued and outstanding Preferred shares-\$3 cumulative dividend, 180,000 issued and outstanding Retained earnings Requirement c. Prepare the journal entries required for 2020. (Record debits first, then credits. Explanations are not required.) July 1: Repurchased and cancelled 75,000 common shares at a cost of $18 each. Net income for the year was $1,800,000. Common shares Contributed surplus - common shares, from repurchase and resales Contributed surplus - preferred shares, from repurchase and resales Dividends payable on common shares Dividends payable on preferred shares Income summary Preferred shares Retained earnings Treasury shares - common Treasury shares - preferred Requirement d. Prepare the equity section of the balance sheet as at December 31,2020 , including any notes that would be required. Begin by preparing the equity section of the balance sheet at December 31,2020. Bonds payable-7\% due 2019 Common shares-2,000,000 authorized, 75,000 issued and outstanding Common shares-2,000,000 authorized, 150,000 issued and outstanding Contributed surplus - common shares, from share repurchases and resales Contributed surplus-preferred shares, from share repurchases and resales Current liabilities Preferred shares-\$3 cumulative dividend, 10,000 issued and outstanding Preferred shares- $3 cumulative dividend, 75,000 issued and outstanding Retained earnings
