Question
On January 1, 2020, Flint Ltd. (a public company) had the following shareholders equity accounts: Preferred shares, $ 4 noncumulative, unlimited number authorized, none issued
On January 1, 2020, Flint Ltd. (a public company) had the following shareholders equity accounts:
Preferred shares, $ 4 noncumulative, unlimited number authorized, none issued | 0 | ||
Common shares, unlimited number authorized, 810,000 issued | $ | 7,290,000 | |
Retained earnings | 1,129,000 | ||
Accumulated other comprehensive income | 143,0 |
The following selected transactions occurred during 2020:
Jan. 2 | Issued 120,000 preferred shares at $ 80 per share. | |
Mar. 5 | Declared the quarterly cash dividend to preferred shareholders of record on March 20, payable April 1. | |
Apr. 18 | Issued 150,000 common shares at $ 12 per share. | |
June 5 | Declared the quarterly cash dividend to preferred shareholders of record on June 20, payable July 1. | |
Sept. 5 | Declared the quarterly cash dividend to preferred shareholders of record on September 20, payable October 1. | |
Dec. 5 | Declared the quarterly cash dividend to preferred shareholders of record on December 20, payable January 1. | |
Dec. 31 | Net income for the year was $ 390,000. |
Prepare journal entries to record the transactions above, as well as the closing entries for Income Summary and Dividends.
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
Cash | |||
Preferred Shares | |||
enter an account title | 120,000 |
| |
Dividends Payable |
| 120,000 | |
Dividends Payable | 120,000 |
| |
Cash |
| 120,000 | |
Cash | |||
| |||
enter an account title | |||
enter an account title | |||
enter an account title | |||
enter an account title | |||
enter an account title | |||
enter an account title | |||
enter an account title | |||
enter an account title | |||
enter an account title | |||
enter an account title | |||
enter an account title | |||
enter an account title | |||
(To close income summary account) | |||
enter an account title | |||
enter an account title | |||
(To close dividends account) |
Enter beginning balances and post the entries to the shareholders' equity and dividends T accounts and arrive at the ending balances. (Post entries in the order of journal entries presented in the previous part.)
Preferred Shares | |||
---|---|---|---|
Transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
enter a debit amount | choose a transaction date | enter a credit amount | |
enter a debit balance | choose the end date of the accounting period | enter a credit balance |
Common Shares | |||
---|---|---|---|
choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
choose the end date of the accounting period | enter a debit balance | choose the end date of the accounting period | enter a credit balance |
Retained Earnings | |||
---|---|---|---|
choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
choose the end date of the accounting period | enter a debit balance | choose the end date of the accounting period | enter a credit balance |
Accumulated Other Comprehensive Income | |||
---|---|---|---|
choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
choose the end date of the accounting period | enter a debit balance | choose the end date of the accounting period | enter a credit balance |
Dividends | |||
---|---|---|---|
choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
choose the end date of the accounting period | enter a debit balance | choose the end date of the accounting period | enter a credit balance |
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