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Posted on Sep 17, 2024

* Question 1 Ceradyne Corporation, a publicly traded company, is authorized to issue 212,000 $4 cumulative preferred shares and an unlimited number of common shares.

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* Question 1 Ceradyne Corporation, a publicly traded company, is authorized to issue 212,000 $4 cumulative preferred shares and an unlimited number of common shares. On January 1, 2018, the general ledger contained the following shareholders' equity accounts: Preferred shares (8,700 shares issued) $469,800 Common shares (67,200 shares issued) 1,075,200 Contributed surplus 27,500 Retained earnings 813,000 Accumulated other comprehensive income 10,800 The following equity transactions occurred in 2018: Feb. 6 6 Issued 9,000 preferred shares for $531,000. Apr. 6 Issued 19,200 common shares for $566,400. 27 Reacquired and retired 3,300 common shares at $18 per share. May 29 Declared a semi-annual cash dividend to the preferred shareholders of record at June 12, payable July 1. Aug. 22 Issued 8,700 common shares in exchange for a building. At the time of the exchange, the building was valued at $154,600 and the common shares at $141,000. Dec. 14 The board of directors decided there were insufficient funds to declare the semi-annual dividend to the preferred shareholders. 31 Net Income for the year was $533,000. Record the above transactions, including any entries required to close dividends and net income. (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 o for the amounts. Round average cost per share to 2 decimal palces, e.g. 2.25 and final answers to o decimal places.) Date Account Titles and Explanation Debit Credit Feb. 6 Cash 531000 Preferred Shares 531000 Apr. 6 Cash 566400 Common Shares 566400 Apr. 27 Common Shares 62700 Contributed Surplus 3300 Cash 59400 May 29 Dividends Declared 35400 Dividends Payable 35400 June 12 No Entry D No Entry 0 July 1 Dividends Payable 35400 Cash 35400 Aug. 22 Buildings 154600 Common Shares 154600 Dec. 14 No Entry No Entry 0 Closing entries: Date Account Titles and Explanation Debit Credit Doc. 31 Income Summary 533000 Retained Earnings Open T accounts and post to the shareholders' equity accounts. (Record entries in the order presented in the problem.) Preferred Shares Jan. 1 Bal. 531000 Dec. 31 B Jan. 1 Bal. Jan. 10 Apr. 27 Dec. 31 B Feb. 6 Apr. 6 Dec. 31 Apr. 27 Dec. 31 May 29 June 12 July 1 Dec. 31 Aug. 22 May 29 Dec. 14 Acci Dec. 31 Bal. Dec. 31 E Dec. 31 CE SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare the statement of changes in equity for the year. (Enter negative amounts using either a negative sig preceding the number e.g. -45 or parentheses e.g. (45).) CERADYNE CORPORATION Statement of Changes in Equity Share Capital Open T accounts and post to the shareholders' equity accounts. (Record entries in the order presented in the problem.) Preferred Shares Jan. 1 Bal. 531000 Dec. 31 Bal. 531000 Feb. 6 531000 531000 Common Shares Jan. 1 Bal. 1075200 Apr. 27 62700 Apr. 6 566,400 Dec. 31 Bal. 566400 Aug. 22 154600 Retained Earnings Dec. 31 CE Jan. 1 Bal. 813000 Dec. 31 CE Dec. 31 CE Contributed Surplus Jan. 1 Bal. Apr. 27 Dec. 31 Bal. Dividends Declared May 29 July 1 Accumulated Other Comprehensive Income Aug. 22 Dec. 31 Bal. SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare the statement of changes in equity for the year. (Enter negative amounts using either a negative sig preceding the number e.g. -45 or parentheses e.g. (45).) CERADYNE CORPORATION Statement of Changes in Equity Contributed Surplus Jan. 1 Bal. Apr. 27 Dec. 31 Bal. Dividends Declared May 29 July 1 Accumulated Other Comprehensive Income Aug. 22 Dec. 31 Bal. Prepare the statement of changes in equity for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) CERADYNE CORPORATION Statement of Changes in Equity Share Capital Preferred Shares Accumulated Other Comprehensive Income Common Shares Contributed Surplus Retained Earnings Total Balance, Jan. 1 $ $ $ Issued preferred shares Issued common shares Repurchased common shares Dividends declared Net income Balance, Dec. 31 Prepare the shareholders' equity section of the statement of financial position at December 31. (Enter account name only and do not provide descriptive information.) CERADYNECORPORATION Statement of Financial Position (Partial) December 31, 2018 Shareholders̵ Share Capital Preferred Shares $ Common Shares Contributed Surplus Accumulated Other Total Contributed CA Retained Earnings Total Shareholders