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Problem #5 (20 Marks): On February 1, 2019, the JDS Corporation had 40,000 of non-par value common shares outstanding originally issued at $510,500. The corporation
Problem #5 (20 Marks): On February 1, 2019, the JDS Corporation had 40,000 of non-par value common shares outstanding originally issued at $510,500. The corporation is authorized to issue an unlimited number of common shares. The balance of its retained earnings account on that date was $1,350,000. The following transactions occurred during the year: Mar. 3 Sold 5,000 common shares to investors at $10 per share for cash. Apr. 8 Bought back (repurchased) 3,500 of its own common shares from investors at $10.00 per share in cash. Aug 3 Declared a 10% stock dividend to common shareholders of record, as of Aug 20. The market price per common share was $13.00 on Aug 3 and the stock dividend was distributed to shareholders on Sept 1. Oct. 2 Board of Directors declared a $0.30 per share cash dividend to common shareholders. The date of record was October 15, the date of record was October 21, and the payment date was October 31. Jan. 31 The Corporation reported $1,100,000 in revenue and $1,180,000 in expenses during the year. Instructions a) Prepare the journal entries related to the above transactions. Calculate to the nearest dollar. b) Prepare the shareholders' equity section of the balance sheet, January 31, 2020
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