Holland Incorporateds records provide the following information on January 1, 2019:

Preferred stock, $50 par (5,000 shares authorized, issued, and outstanding)	$250,000
Common stock, $10 par (20,000 shares authorized, 10,000 shares issued and outstanding)	100,000
Additional paid-in capital on preferred stock	50,000
Additional paid-in capital on common stock	80,000
Retained earnings	100,000

During 2019, the following transactions were recorded by Holland:

1.	Reacquired 250 shares of preferred stock for $53 per share.
2.	Reacquired 500 shares of common stock for $20 per share.
3.	Sold 200 shares of the common stock acquired in Transaction 2 for $27 per share.
4.	Sold 250 shares of preferred stock acquired in Transaction 1 for $59 per share.
5.	Sold 100 shares of the common stock acquired in Transaction 2 for $18 per share.

Required:

1.	Prepare journal entries to record the stock transactions of Holland assuming it uses the cost method of accounting for treasury stock.
2.	Prepare the shareholders equity section of the Holland balance sheet at December 31, 2019, assuming 2019 net income was $40,000 and dividends distributed were $20,000.
3.	Next Level Assume that Holland is using IFRS. At the end of 2019, Holland revalued its property, plant, and equipment upward by $50,000. Discuss how Hollands shareholders equity items would be different under IFRS, and then, based on your answer, repeat Requirement 2.

CHART OF ACCOUNTS

Holland Incorporated

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
305	Preferred Stock
311	Common Stock
318	Additional Paid-in Capital on Preferred Stock
320	Additional Paid-in Capital on Common Stock
321	Additional Paid-in Capital from Treasury Stock
331	Retained Earnings
336	Treasury Stock: Preferred
337	Treasury Stock: Common

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense

Amount Descriptions

Accumulated profits and losses

Revaluation surplus

Total contributed capital

Total contributed capital and retained earnings

Total shareholders equity

Treasury stock

1. Prepare journal entries to record the stock transactions of Holland assuming it uses the cost method of accounting for treasury stock on December 31, 2019.

General Journal Instructions

All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.

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GENERAL JOURNAL

Score: 99/162

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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2. Prepare the shareholders equity section of the Holland balance sheet at December 31, 2019, assuming 2019 net income was $40,000 and dividends distributed were $20,000.

Balance Sheet Instructions

Score: 12/99

HOLLAND INCORPORATED

Shareholders' Equity

December 31, 2019

1	Contributed Capital:
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