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Need all parts answered please Chapter Question On Jan.2, 2014, Rolman Corporation began operations. Its articles of incorporation authorize it to issue an unlimited number
Need all parts answered please
Chapter Question On Jan.2, 2014, Rolman Corporation began operations. Its articles of incorporation authorize it to issue an unlimited number of CS and 500,000,$3 Non-cumulative PS. In its first year, 2014, the company had the following transactions: Jan 2 Issued 50,000 CS to Rowena Roiman for $10 cash per share. Jan 10 Issued 1,500 CS to Rowena's brother in exchange for a used vehicle. The vehicle was appraised at $15,000 June 30 Declared a $0.25 dividend to the CS holders of record on July 1 , payable July 5. July 5 Paid the CS dividend Oct 1 Issued 1,000 PS to Rowena's grandmother for $60 cash per share Dec 30 Declared the $0.75 quarterly PD dividend, and a $0.25CS dividend. Both dividends are payable on Jan. 5 to the shareholders of record on Jan. 1 During 2014 , the company had a service revenue of $240,000 and operating expenses of $180,000. The company has a 15% income tax rate and did not make any instalments during the year. Instructions a) Journalize the transactions (ignore the Rev/Exp amounts) b) Prepare an is and record the transaction to accrue the income tax c) Prepare the statement of retained earnings and shareholders equity section of the BS d) Prepare the closing entries Step by Step Solution
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