part A

part B

closing enteries

part C

T accounts and post the shareholder's equity accounts.

part D

prepare a statement of retained earnings for the year.

part E

prepare the shareholder's equity section of the statement of financial position at december 31.

Problem 11-4A On January 1, 2018, Sweetwater Ltd., a private company, had the following shareholders' equity accounts: Preferred shares, $1 noncumulative, unlimited number authorized, none issued Common shares, unlimited number authorized, 2.86 million issued Retained earnings $2,860,000 3,470,000 The following selected transactions occurred during 2018: Jan. 2 Issued 210,000 preferred shares at $25 per share. Feb. 8 Issued 100,000 common shares in exchange for land. On this date, the current value of the land was $210,000. The common shares have not recently traded. but the last time they traded, they sold for $2.50 per share. Mar. 5 Declared the quarterly cash dividend to preferred shareholders of record on March 20, payable April 2. Apr. 18 Issued 390,000 common shares at $3.00 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 Oct. 4 Issued 36,000 preferred shares at $25 per share. Dec. 5 Declared the quarterly cash dividend to preferred shareholders of record on December 20, payable January 1. 14 Declared a cash dividend of 50.50 per share to the common shareholders of record on December 31, payable January 10. 31 Net Income for the year was $1.10 million Record the above transactions for 2018, including any entries required to close dividends declared and net income to Retained Earnings. (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.) Transaction entries Date Account Titles and Explanation Debit Credit Closing entries: Date Account Titles and Explanation Debit Credit Dec. 31 Income Summary Retained Earnings (To record net income/(loss)) Dec. 31 Retained Earnings Dividends Declared (To close dividends) Open T accounts and post to the shareholders' equity accounts. (Record entries in the order presented in the problem. Preferred Shares Retained Earnings Retained Earnings Dividends Declared X x XIX Prepare a statement of retained earnings for the year. (List items that increase retained earnings first.) SWEETWATER LTD, Statement of Retained Earnings For the Year Ended December 31, 2018 Retained Earnings, January 1 Add Net Income / (Loss) Dividends Declared x Retained Earnings, December 31 Prepare the shareholders' equity section of the statement of financial position at December 31. (Enter account name only and do not provide descriptive information.) SWEETWATER LTD. Statement of Financial Position (Partial) December 31, 2018 Shareholders' Equity Share Capital - Preferred Shares Common Shares Total Share Capital Retained Earnings Total Shareholders' Equity