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Please answer all parts of each question a-d Chapter Review Problem On January 1, 2014, Bacola Corp., a public company, had the following shareholders' equity
Please answer all parts of each question a-d
Chapter Review Problem On January 1, 2014, Bacola Corp., a public company, had the following shareholders' equity accounts: During the year, the following transactions occurred: Jan. 18 Apr. 10 June 1 June 30 Aug. 1 Nov 30 Dec. 30 Reacquired 10,000CS for $13 per share Discovered that it had understated its COGS in 2013 by $50,000 Announced a 2-for-1 stock split of the common shares. Immediately before the split the share price was 13.50 per share. Declared a $0.40CD to CS holders of record on July 16 , payable August 1. Paid the dividend declared on June 30. Reacquired 40,000 CS for $5.50 per share Declared a 5% SD to CS holders of record on Jan. 15, distributable Jan. 31. On Dec. 30, the share price was $5 per share. On Jan. 15 , it was $5.50 per share, and on Jan. 31 , it was $6 per share. In addition, Bacola Corp. reported profits of $590,000 and a pre-tax loss on equity investments of $60,000, which is Other Comprehensive income (loss). The company has a 30% income tax rate. Instructions a) Record the transactions b) Prepare the statement of Comp. Income c) Prepare the statement of changes in Shareholders' Equity d) Prepare the shareholders' equity section of the Balance Sheet Step by Step Solution
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