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Question 3 - 10 marks 21 minutes Cooper Physics Consulting Inc. began business on January 1, 2019. Selected transactions from 2019 are described below: January
Question 3 - 10 marks 21 minutes Cooper Physics Consulting Inc. began business on January 1, 2019. Selected transactions from 2019 are described below: January 2 Issued 10,000 shares of common stock in exchange for equipment worth $300,000 January 15 Issued 4,000 shares of preferred stock in exchange for cash of $40,000. February 14 The Board of Directors declares a dividend on the common shares for $0.25 per share, March 31 The Board of Directors declared the regular quarterly dividend on the preferred shares. The preferred shares pay a quarterly cumulative dividend of $0.50 per share. April 12 Paid employees a total of $15,600 in gross pay. The following deductions were taken off of the employees' gross pay $2,000 in employee CPP $1,100 in employee El $4,000 in employee income tax Do not record the employer's portion of payroll taxes. May 4 Made a cash sale of $10,000 and charged $1,300 in HST. June 30 Issued bonds with a face value of $100,000. Received cash of $100,000 (i.e. the bonds were issued at par.) December 312 Paid semi-annual interest on the bonds issued on June 30. The bonds will mature in 10 years' time. The face rate of interest is 5% and the bonds pay interest semi- annually. Required: Record the above transactions in the table below: Record the above transactions in the table below: te Date Assets Liabilities + Shareholders' Equity Cash Equip ment Riv Divi gends Payable CPP Payable El Payable Income Tax Payable HST Payable Bonds Payable Common Shares Pre- fecres. Shares Retained Earnings
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