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Munchies Corporation, a publicly traded company is authorized to issue 205,000 54 noncumulative preferred shares and an unlimited number of common shares. On January 1,
Munchies Corporation, a publicly traded company is authorized to issue 205,000 54 noncumulative preferred shares and an unlimited number of common shares. On January 1, 2021, the general ledger contained the following shareholders' equity accounts: Preferred shares (7,800 shares issued) $436,800 Common shares (67,200 shares issued) 1,008,000 Contributed surplus 25,700 Retained earnings 722,000 Accumulated other comprehensive income 10,200 The following equity transactions occurred in 2021 Feb 6 Issued 9,100 preferred shares for $546,000 Issued 19,200 common shares for $547,200 Apr 6 27 Repurchased and retired 2.700 common shares at $17 per share. The balance in the Contributed Surplus account arose from the repurchase of common shares in prior years. May 29 Declared a semi-annual cash dividend to the preferred shareholders of record at June 12. payable July 1. AUG 22 issued 9,700 common shares in exchange for a building. At the time of the exchange, the building was valued at $175,600 and the common shares at $160.000 Dec 14 The board of directors decided there were insufficient funds to declare the semi-annual dividend to the preferred shareholders 31 Net income for the year was $592,000 Cash 436800 Preferred Shares 436800 Cash Common Shares
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