Question 1 The shareholder's equity of the Crain Corporation, a publicly accountable entity, as at December 31, 20x4 was as follows: $8,750,000 4,000,000 Common Shares, 250,000 shares issued and outstanding Preferred Shares - Series A, $5, cumulative and fully participating, 40,000 shares outstanding Preferred Shares - Series B, 6%, noncumulative, 30,000 shares outstanding Contributed Surplus - Common Share Repurchases Retained Earnings 3,000,000 150,000 4,760,000 Dividends were last declared on December 31, 20x3. The following transactions were incurred during the year ended December 31, 20x5: Mar 15 Issued 30,000 common shares for total proceeds of $1,350,000. Incurred $75,000 of transaction costs on the issue of shares. April 10 Repurchased 10,000 common shares at total cost of $480,000 April 30 Declared a 2:1 stock split June 30 Issued 50,000 common shares for total proceeds of $1,300,000. Incurred $65,000 of transaction costs on the issue of shares. Sep 30 Repurchased 18,000 common shares at a total cost of $450,000. Dec 15 Declared a total dividend of $1,600,000. Crain uses separate dividend payable accounts for each category of shares. Dec 31 The net income for the year was $2,200,000. Required - Write all journal entries for the above transactions. Use 3 decimals precision when calculating per share numbers. Prepare a statement of changes in shareholders' equity for the year ended December 31, 20x5. Question 1 The shareholder's equity of the Crain Corporation, a publicly accountable entity, as at December 31, 20x4 was as follows: $8,750,000 4,000,000 Common Shares, 250,000 shares issued and outstanding Preferred Shares - Series A, $5, cumulative and fully participating, 40,000 shares outstanding Preferred Shares - Series B, 6%, noncumulative, 30,000 shares outstanding Contributed Surplus - Common Share Repurchases Retained Earnings 3,000,000 150,000 4,760,000 Dividends were last declared on December 31, 20x3. The following transactions were incurred during the year ended December 31, 20x5: Mar 15 Issued 30,000 common shares for total proceeds of $1,350,000. Incurred $75,000 of transaction costs on the issue of shares. April 10 Repurchased 10,000 common shares at total cost of $480,000 April 30 Declared a 2:1 stock split June 30 Issued 50,000 common shares for total proceeds of $1,300,000. Incurred $65,000 of transaction costs on the issue of shares. Sep 30 Repurchased 18,000 common shares at a total cost of $450,000. Dec 15 Declared a total dividend of $1,600,000. Crain uses separate dividend payable accounts for each category of shares. Dec 31 The net income for the year was $2,200,000. Required - Write all journal entries for the above transactions. Use 3 decimals precision when calculating per share numbers. Prepare a statement of changes in shareholders' equity for the year ended December 31, 20x5
