Question
Question :Hi the question as it is from book of accounting page 629 ( financial accounting tools for business descion making kimmel) problem 11-3A Problem
Question :Hi the question as it is from book of accounting page 629 ( financial accounting tools for business descion making kimmel) problem 11-3A
Problem 11-3A
largent Corporation, a publicly traded company, is authorized to issue 200,000 $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 (8,000 shares issued) | $440,000 | |
Common shares (70,000 shares issued) | 1,050,000 | |
Contributed surplus | 25,000 | |
Retained earnings | 800,000 | |
Accumulated other comprehensive income | 10,000 |
The following equity transactions occurred in 2018:
Feb. | 6 | Issued 10,000 preferred shares for $600,000. | |
Apr. | 6 | Issued 20,000 common shares for $570,000. | |
27 | Reacquired and retired 3,000 common shares at $17 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 9,000 common shares in exchange for a building. At the time of the exchange, the building was valued at $165,000 and the common shares at $150,000. | |
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 $582,000. |
(a)
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 0 for the amounts. Round average cost per share to 2 decimal palces, e.g. 2.25 and final answers to 0 decimal places.)
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started