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please solve Larkspur Inc., a private company is authorized to issue an unlimited number of common shares and 180,000 noncumulative 54 preferred shares. It began
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Larkspur Inc., a private company is authorized to issue an unlimited number of common shares and 180,000 noncumulative 54 preferred shares. It began operations on January 1, 2021, and the following are selected transactions during 2021 Jan 1 Issued 400,000 common shares for $200,000 cash 2 Issued 40,000 preferred shares for $45 cash per share Dec 1 Dedared a total of $220,750 in dividends, payable on January 5, to shareholders of record on December 13. 31 Determined that it had total revenues of $930,000 and operating expenses of $630,000 Larkspur elected to report under ASPE. It has a 15% income tax rate and paid income tax instalments during the year of $37.000, Record the share issue and dividend transactions. (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.) Date Account Titles and Explanation Credit Debit To record issuance of shares) 7 (To record issuance of shares Dec 1 To record declaration of dividend) eTextbook and Media List of Accounts Prepare a partial income statement starting with profit before income tax and record an adjusting entry for income tax (Cradle account titles are automatically indented when the amount is ented. Do not Indent may if notis mquired, select "No Entry for the amounts and enter for the amounts LARKSPUR INC. Income Statement (Partial) $ Debit Credit Date Account Titles and Explanation Dec. 31 To record income tax expense eTextbook and Media List of Accounts Prepare a statement of retained earnings. (List items that increase retained earnings first.) LARKSPUR INC. Statement of Retained Earnings Prepare a statement of retained earnines (Ust items that increase retained eamings first.) LARKSPUR INC. Statement of Retained Earnings $ s e Textbook and Media Prepare the shareholders' equity section of the balance sheet. LARKSPUR INC. Balance Sheet (Partial) $ sStep by Step Solution
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