On January 1, 2021, Espresso Ltd., a private company. had the following shareholders' equity accounts: Preferred shares, $10 noncumulative, unlimited number authorized, none issued Common shares, unlimited number authorized, 2.90 million issued Retained earnings $2,900.000 4,000,000 The following selected transactions occurred during 2021- Jan. 2 Issued 220,000 preferred shares at $25 per share. Feb. 8 Issued 90,000 common shares in exchange for land. On this date, the fair value of the land was $183,000. The common shares have not recently traded, but the last time they traded, they sold for $2.5 per share. Mar. 5 Apr. 18 Declared the quarterly cash dividend to preferred shareholders of record on March 20. payable April 2. Issued 433,000 common shares at $3 per share . Declared the quarterly cash dividend to preferred shareholders of record on June 20. payable July 1 June 5 Sept. 5 Declared the quarterly cash dividend to preferred shareholders of record on September 20, payable October 1. Oct. 4 4 Issued 43,000 preferred shares at $25 per share. Dec. 5 Declared the quarterly cash dividend to preferred shareholders of record on December 20. payable January 1 Declared a cash dividend of $0.5 per share to the common shareholders of record on December 31, payable January 10. 14 31 Net income for the year was $1.03 million. Record the above transactions for 2021, including any entries required to close dividends and net income to Retained Earnings. (List all debit entries before credit 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 for the amounts.) Transaction entries: Date Account Titles and Explanation Debit Credit in 2 Cash 5500000 Preferred Shares 5500000 ab. 8 V Cash 183000 Common Shares 183000 lar. 5 5 Dividends Declared 55000 Dividends Payable 55000 lar. 20 No Entry 0 No Entry 0 pr. 2 Dividends Payable 55000 Cash 55000 pr. 18 Cash 1299000 Common Shares 1299000 ines V Dividends Declared 55000 Dividends Payable 55000 une 20 No Entry 0 No Entry 0 uly 1 V Dividends Payable 55000 Cash 55000 apt. 5 Dividends Declared 55000 Dividends Payable 55000 apt. 20 No Entry 0 No Entry 0 0 ct. 1 Dividends Payable 55000 Cash 55000 Ct. 4 Cash 1075000 Preferred Shares 1075000 ec. 5 Dividends Declared 65750 Cash 65750 ec. 14 Dividends Declared Dividends Payable Closing entries: Date Account Titles and Explanation Debit Credit Dec. 31 Income Summary 1030000 Retained Earnings 103000 (To record net income/(loss)) Dec. 31 Retained Earnings Dividends Payable (To close dividends)
