Problem 4 Corporations 50 minutes 47 marks Slytherin Inc is a new company and is authorized to issue unlimited, $5, non cumulative preferred shares and an unlimited number of common shares The following transactions affecting the equity of the company occurred during 2020 January 6 Issued 35,000 common shares at $17 per share January 7 Issued 3,000 common shares in exchange for Corporation Expenses that were valued at $8,000 January 12 Issued 4,000 preferred shares at $42 per share June 1 Issued 40,000 common shares at $20 per share June 30 Slytherin Inc declares a cash dividend on both preferred and common shares totaling $80,000 for the shareholders of record July 10 The dividend will be paid on July 15 th July 15 Slytherin Inc paid the cash dividend declared on June 30 th December 31 After all the revenue and expense accounts were closed, the income summary showed a profit of $465,000 Required 1 Prepare the journal to record the above transactions Make sure to include the closing of the income summary and cash dividend account on Dec 31st 2 Prepare the statement of shareholders equity in the template provided as of Dec 31 st , 2020

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Problem 4 Corporations 50 minutes 47 marks Slytherin Inc. is a new company and is authorized to issue unlimited, $5, non-cumulative preferred shares and an

Problem 4 Corporations 50 minutes 47 marks

Slytherin Inc. is a new company and is authorized to issue unlimited, $5, non-cumulative preferred shares and an unlimited number of common shares. The following transactions affecting the equity of the company occurred during 2020.

January 6	Issued 35,000 common shares at $17 per share
January 7	Issued 3,000 common shares in exchange for Corporation Expenses that were valued at $8,000
January 12	Issued 4,000 preferred shares at $42 per share.
June 1	Issued 40,000 common shares at $20 per share.
June 30	Slytherin Inc. declares a cash dividend on both preferred and common shares totaling $80,000 for the shareholders of record July 10. The dividend will be paid on July 15^th.
July 15	Slytherin Inc. paid the cash dividend declared on June 30^th.
December 31	After all the revenue and expense accounts were closed, the income summary showed a profit of $465,000.

Required:

1. Prepare the journal to record the above transactions. Make sure to include the closing of the income summary and cash dividend account on Dec 31st.

2. Prepare the statement of shareholders equity in the template provided as of Dec 31^st, 2020.