Question 1 [33 points] X-cell Inc. had the following balances in its equity accounts at December 31, 2014 Common shares, unlimited shares authorized, 80,000 shares issued, and outstanding Retained earnings $720,000 205,000 During 2015, the following equity transactions occurred: a. July 30: A5% share dividend was declared when the market value was $25 per share, to be paid on September 11. b. September 11: Date of distribution regarding the 5% share dividend. C. October 8: The board of directors declared a 2:1 share split on this date. d. December 31: Closed the dividend account. e. December 31: Closed the Income summary account, which has a credit balance of $95,000. a) Prepare journal entries to account for the transactions during 2015. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). General Journal Page Gj1 Date Account/Explanation F Debit Credit 30/Jul Share Dividends Declared. 4,000 + - Common Shares Dividend Distributable 4,000 4,000 11/Sep Common Shares Dividend Distributable. Common Shares 4,000 b 8/Oct 31/Dec + = 31/Dec b) Prepare the company's statement of changes in equity for the year ended December 31, 2015. Please make sure your final answer(s) are accurate to the nearest whole number. X-cell Inc. Statement of Changes in Equity For Year Ended December 31, 2015 Common Retained Total Shares Earnings Equity X + c) Prepare the company's equity section of the balance sheet for the year ended December 31, 2015. Please make sure your final answer(s) are accurate to the nearest whole number. X-cell Inc. Equity Section of the Balance Sheet December 31, 2015 Contributed capital Common shares, unlimited shares authorized: shares issued and outstanding Retained earnings. Total equity... Question 1 [33 points] X-cell Inc. had the following balances in its equity accounts at December 31, 2014 Common shares, unlimited shares authorized, 80,000 shares issued, and outstanding Retained earnings $720,000 205,000 During 2015, the following equity transactions occurred: a. July 30: A5% share dividend was declared when the market value was $25 per share, to be paid on September 11. b. September 11: Date of distribution regarding the 5% share dividend. C. October 8: The board of directors declared a 2:1 share split on this date. d. December 31: Closed the dividend account. e. December 31: Closed the Income summary account, which has a credit balance of $95,000. a) Prepare journal entries to account for the transactions during 2015. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). General Journal Page Gj1 Date Account/Explanation F Debit Credit 30/Jul Share Dividends Declared. 4,000 + - Common Shares Dividend Distributable 4,000 4,000 11/Sep Common Shares Dividend Distributable. Common Shares 4,000 b 8/Oct 31/Dec + = 31/Dec b) Prepare the company's statement of changes in equity for the year ended December 31, 2015. Please make sure your final answer(s) are accurate to the nearest whole number. X-cell Inc. Statement of Changes in Equity For Year Ended December 31, 2015 Common Retained Total Shares Earnings Equity X + c) Prepare the company's equity section of the balance sheet for the year ended December 31, 2015. Please make sure your final answer(s) are accurate to the nearest whole number. X-cell Inc. Equity Section of the Balance Sheet December 31, 2015 Contributed capital Common shares, unlimited shares authorized: shares issued and outstanding Retained earnings. Total equity
