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Hi for the journal entry on may 7, can you help me understand where the amounts come from for common share and contributed surplus. Thaank
Hi for the journal entry on may 7, can you help me understand where the amounts come from for common share and contributed surplus.
Thaank you
The shareholders' equity section of Provincial Dairy Products, Inc. (PDP) showed the following details as at January 1, 2021. The following transactions related to equity occurred in 2021: Jan. 3 PDP issued 5,000 common shares for cash at $70 per share. On the same day, the company acquired a plot of land and a building by issuing 10,000 common shares. The land had an appraised value of $240,000. May 7 PDP repurchased and cancelled 1,000 common shares at $65 per share. Dec. 2 PDP declared the annual cash dividend on preferred shares, payable on January 2 , 2022. PDP did not declare dividends in 2020. PDP also declared a 5% common stock dividend to common shareholders, to be issued on December 20, 2021. The market price per common share was $80 on December 2 . Dec. 20 Issued the additional common shares. May7Commonshares(1,000shares$45)ContributedsurplusoncommonsharesCash(1,000$65)45,00020,00065,000Step by Step Solution
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