Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help asap! Zen Aerospace Corporation reported the following equity account balances on December 31, 2019: $ 0 Preferred shares, $3.60 cumulative, unlimited shares authorized

image text in transcribed

image text in transcribed

please help asap!

Zen Aerospace Corporation reported the following equity account balances on December 31, 2019: $ 0 Preferred shares, $3.60 cumulative, unlimited shares authorized Common shares, unlimited shares authorized, 20,500 shares issued and outstanding Retained earnings 565,800 325,000 In 2020, the company had the following transactions affecting shareholders and the shareholders' equity accounts: Jan. 1 Purchased and retired 2,100 common shares at $36 per share. 14 The directors declared an 8% share dividend distributable on February 5 to the January 30 shareholders of record. The shares were trading at $45.70 per share. 30 Date of record regarding the 8% share dividend. Feb. 5 Date of distribution regarding the 8% share dividend. July 6 Sold 5,100 preferred shares at $61 per share. Sept. 5 The directors declared a total cash dividend of $48,000 payable on October 5 to the September 20 shareholders of record. Oct. 5 The cash dividend declared on September 5 was paid. Dec. 31 closed the $466,600 credit balance in the Profit Summary account to Retained Earnings. 31 closed the dividend accounts. Required 1. Prepare journal entries to record the transactions and closings for 2020 (assume the retirements were the first ever recorded by Zen Aerospace). Assume share dividends and cash dividends account is used when dividends are declared. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Prepare the statement of changes in equity for the year ended December 31, 2020. (Amounts to be deducted should be indicated by a minus sign. Round the final answer to the nearest whole dollar.) ZEN AEROSPACE CORPORATION Statement of Changes in Equity For Year Ended December 31, 2020 Preferred Common Shares Shares Retained Earnings Total Equity Balance, January 1 Balance, December 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Energy Audit And Management Concept Methodologies Procedures And Case Studies

Authors: L. Ashok Kumar, Gokul Ganesan

1st Edition

978-1032067797

More Books

Students also viewed these Accounting questions