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I will appreciate your help! Thank very much! Some of the account balances of Vos Limited at December 31, 2019 are as follows: $6 Preferred
I will appreciate your help!
Thank very much!
Some of the account balances of Vos Limited at December 31, 2019 are as follows: $6 Preferred shares ( 2,000 shares authorized, 2,000 shares issued and outstanding) $ 660,000 Common shares (unlimited authorized, 62,000 shares issued and outstanding) 500,000 Contributed surplus 103,000 Retained earnings 774,000 Accumulated other comprehensive income 22.320 The price of the company's common shares has been increasing steadily on the market; it was $ 21 on January 1, 2020 and advanced to $ 24 by July 1 and to $27 at the end of 2020. The preferred shares are not openly traded but were appraised at $ 120 per share during 2020. Vos follows IFRS and had net income of $ 145,000 during 2020. For the purpose of this question, ignore any dividend entitlement to the preferred shareholders. Your answer is partially correct. The company declared a property dividend on April 1. Each common shareholder was to receive one share of Waterloo Corp. for Your answer is partially correct. The company declared a property dividend on April 1. Each common shareholder was to receive one share of Waterloo Corp. for every 10 shares outstanding. Vos had 8,000 shares of Waterloo (2% of the outstanding shares), and had purchased them in 2015 for $68,400. The shares are accounted for using the FV-OCI model. The accumulated other comprehensive income relates only to these shares. The fair value of the Waterloo shares was $ 16 per share on April 1. The property dividend was distributed on April 21 when the fair value of the Waterloo shares was $ 18.50. The Waterloo shares remained at a fair value of $ 18.50 until year end. Prepare the journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, e.g. 5,275. Do not round intermediate calculations.) Date Account Titles and Explanation Debit Credit Apr. 1 FV- OCI Investments 84,000 Accumulated OCI 84,000 (To record fair value adjustment) Apr. 1 Dividends 50,544 Property Dividends Payable 50,544 (To record declaration of property dividend) Apr. 1 Dividends 50,544 Property Dividends Payable 50,544 (To record declaration of property dividend) Apr. 1 Dividends Payable 84,000 investment 100,800 (To reclassify holding gain) Apr. 21 Investment Income or Loss 51,968 Retained Earnings O 51,968 e Textbook and Media List of Accounts Your answer is partially correct. On July 1, the company declared a 5% stock dividend at the fair value of the shares to the remaining common shareholders. The stock dividend was distributed July 22. Prepare the journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit July 1 Dividends 51,520 Dividends Payable 51,520 July 22 Dividend payable 51.520 Contributed Surplus 32.720 e Textbook and Media List of Accounts Your answer is partially correct. A shareholder, in an effort to persuade Vos to expand into her city, donated to the company a plot of land with an appraised value of $ 42,000. Prepare the journal entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Land 42,000 Contributed Surplus 42,000 e Textbook and Media List of Accounts Prepare the shareholders' equity section of Vos's SFP at December 31, 2020. (Round answers to O decimal places, e.g. 5,275. Do not round intermediate calculations.) Vos Limited Shareholders' Equity December 31, 2020 Share Capital Preferred Shares $ 660.000 Common Shares 500,000 Total Share Capital 1160000 Contributed Surplus 172,720 Total Paid-in Capital 1261520 Retained Earnings 822,648 Accumulated OCI 20,416 Total Shareholders' Equity v $ 2,104,584Step by Step Solution
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