Question
On January 1, 2021, Blossom Ltd. had the following shareholders' equity accounts: Splish Brothers Inc. has recorded all necessary adjusting entries, except for income tax
On January 1, 2021, Blossom Ltd. had the following shareholders' equity accounts:
Splish Brothers Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end, July 31, 2021. The following information has been taken from the adjusted trial balance:
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The company was also authorized to issue an unlimited number of $4 noncumulative preferred shares. As at January 1, 2021, none had been issued. During 2021, the corporation had the following transactions and events related to its shareholders' equity:
Jan. | 2 | Issued 95,000 preferred shares for $44 per share. | |
Apr. | 1 | Paid quarterly dividend to preferred shareholders. | |
July | 1 | Paid quarterly dividend to preferred shareholders. | |
Aug. | 12 | Issued 95,000 common shares for $1.50 per share. | |
Oct. | 1 | Paid quarterly dividend to preferred shareholders. | |
Dec. | 31 | Paid quarterly dividend to preferred shareholders and a $0.25 per share dividend to the common shareholders. | |
Dec. | 31 | Loss for the year was $95,000. |
(a)
Journalize the transactions and the entries to close dividends and the Income Summary account. (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 0 for the amounts. Record journal entries in the order presented in the problem.)
Date | Account Titles and Explanation | Debit | Credit |
Jan. 2Apr. 1July 1Aug. 12Oct. 1Dec. 31 | |||
(To record issuance of shares.) | |||
Jan. 2Apr. 1July 1Aug. 12Oct. 1Dec. 31 | |||
Jan. 2Apr. 1July 1Aug. 12Oct. 1Dec. 31 | |||
Jan. 2Apr. 1July 1Aug. 12Oct. 1Dec. 31 | |||
(To record issuance of shares.) | |||
Jan. 2Apr. 1July 1Aug. 12Oct. 1Dec. 31 | |||
Dec. 31 | |||
(To record dividends paid) | |||
Jan. 2Apr. 1July 1Aug. 12Oct. 1Dec. 31 | |||
(To close Income Summary.) | |||
Jan. 2Apr. 1July 1Aug. 12Oct. 1Dec. 31 | |||
(To close dividends.) |
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