Richetti Corporation, a publicly traded company, is authorized to issue 219,000 $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 (8,600 shares issued) $473,000 Common shares (72,800 shares issued) 1,092,000 Contributed surplus 24,300 Retained earnings 788,000 Accumulated other comprehensive income 10,400 The following equity transactions occurred in 2018: Feb. 6 Issued 9,200 preferred shares for $561,200. Apr. 6 Issued 20,800 common shares for $592,800. 27 Reacquired and retired 3,300 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 $178,000 and the common shares at $ 163,000. 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 $561,000. 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 0 decimal places.) Debit Credit Date Feb. 6 Account Titles and Explanation Cash 561200 Preferred Shares 561200 Apr. 6 Cash 592800 Common Shares 592800 Apr.27 1 Common Shares 59400 Contributed Surplus 3300 Cash 56100 May 29 Dividends Declared Dividends Payable June 12 No Entry No Entry July 1 Dividends Payable Cash Closing entries: Date Account Titles and Explanation Debit Credit Dec. 31 (To close net income/(loss).) Dec. 31 (To close dividends.) Open Taccounts and post to the shareholders' equity accounts. (Record entries in the order presented in the problem.) Preferred Shares Common Shares Retained Earnings Contributed Surplus Dividends Declared Accumulated Other Comprehensive Income 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. RICHETTI CORPORATION Statement of Changes in Equity Share Capital Contributed Surplus Preferred Shares Common Shares Retained Earnings Balance, Jan. 1 Issued preferred shares Issued common shares Repurchased common shares Dividends declared Net income Balance, Dec. 31 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).) RICHETTI CORPORATION Statement of Changes in Equity Share Capital Contributed Surplus Accumulated Other Comprehensive Income ares Common Shares Retained Earnings Total Prepare the shareholders' equity section of the statement of financial position at December 31. (Enter account name only and do not provide descriptive information.) RICHETTICORPORATION Statement of Financial Position (Partial)
