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On January 1, 2021, Hum Enterprises Inc. had 68,000 common shares, recorded at $ 476,000. The company follows IFRS. During the year, the following transactions
On January 1, 2021, Hum Enterprises Inc. had 68,000 common shares, recorded at $ 476,000. The company follows IFRS. During the year, the following transactions occurred: Apr. 1 Issued 6,000 common shares at $ 9 per share. June 15 Declared a 5% stock dividend to shareholders of record on September 5, distributable on September 20. The shares were trading for $ 11 a share at this time. Sep. 21 Announced a 1-for-2 reverse stock split. Shares were trading at $ 9 per share at the time. Nov. 1 Issued 3,000 common shares at $ 20 per share. Dec. 20 Repurchased 10,000 common shares for $ 18 per share. This was the first time Hum had repurchased its own shares. Part A: Using the table below, record the effect(s) of each of the above transactions on the various Shareholders' Equity accounts. Indicate both the dollar amount of the impact and whether the account is increased or decreased by the transaction using a' for increase and a'- for decrease. Use NE in ALL areas that are NOT impacted by the transaction (see the example for April 1, 2021 below). (9 marks) Part B: Track the number and value of the common shar ( (4 marks) Common Shares # of shares Value of shares Beginning 70,000 $ 490,000 Date Share Capital + or - S amount + $ 45,000.00 Contributed Surplus + or - $ amount Retained Earnings + or - S amount Total Shareholders' Equity + or - S amount $ 45,000.00 April 1 2021 NE NE NE NE
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