Share Transactions, Statement of changes in equity, dividend distribution

Q1: Williams Manufacturing Inc., was legally incorporated on January 2nd,2020. Its articles of incorporation hranyed it the right to issue unlimited number of common shares and 100,000 shared of $14.40 non-cumulativr preferred shares. The following transactions are among those that occurred during the first three years of operations

Required:

Journalize the transactions for the years 2020, 2021, and 2022.

Prepare the statement of changes in equity for the year ended December 31st, 2022

Q2: Weighted-average shares outstanding and earnings per share

Pet Boutique Corp. reported $2,952.10 of profit for 2020. On November 2nd, 2020, it declared and paid the annual preferred and common shares respectively. The following transactions changed the number of shares outstanding during the year.

Feb 1 Declared and issued a 20% common share dividend

Apr 30 Sold 159,000 common shares for cash

May 1 Sold 50,000 preferred shares for cash

Oct 31 Sold 42,000 common shares for cash

Required:

1. What is amount of profit available for distribution to the common shareholders?

2. What is the weighted average number of common shares for the year?

3. What is the earnings per share for the year?

Williams Manufacturing Inc., was legally incorporated on January 2nd 2020. Its articles of incorporation granted it the right to issue an unlimited number of common shares and 100,000 shares of $14.40 non-cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations.

2020

Jan 12 Issued 40,000 common shares at $4.80 each

20Issued 6,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $36,000.

31Issued 80,000 common shares in exchange for land, building and equipment, which have fair market values of $360.000, $480.000, and $48,000 respectively.

Mar4Purchased equipment at a cost of $8,160 cash. This was thought to

be a special bargain price. It was felt that at least $10,800 would normally have had to be paid to acquire this equipment.

Dec 31During 2020, the company incurred a loss of $36,000. The Income

Summary account was closed.

2021

Jan4Issued 5,000 preferred shares at $72 per share

Dec31The Income Summary account was closed. Profit for 2021 was $216,000

2022

Dec `4`The company declared a cash dividend of $0.12 per share on the common shares payable on December 18th and also declared the required dividend on the preferred shares.

18Paid the dividends declared on December 4th .

31Profit for the year ended December 31st 2022, was $192,000. The Income

Summary and Cash Dividend accounts were closed.

Required:

1. Journalize the transactions for the years 2020, 2021 and 2022

2. Prepare the statement of changes in equity for the year ended December 31st, 2022

Question Two

Weighted-average shares outstanding and earnings per share

Pet Boutique Corp. reported $2,952.010 of profit for 2020. On November 2nd, 2020, it declared and paid the annual preferred dividends of $203.000. On January 1st 2020, Pet Boutique had 104,000 and 520,000 outstanding preferred and common shares respectively. The following transactions changed the number of shares outstanding during the year.

Feb1Declared and issued a 20% common share dividend

Apr30Sold 159,000 common shares for cash

May1Sold 50,000 preferred shares for cash

Oct31Sold 42,000 common shares for cash.

Required:

1. What is the amount of profit available for distribution to the common shareholders?

2. What is the weighted-average number of common shares for the year?

3. What is the earnings per share for the year?

Question Two Weighted-average shares outstanding and earnings per share Pet Boutique Corp. reported $2,952.010 of profit for 2020. On November 2nd, 2020, it declared and paid the annual preferred dividends of $203.000. On January 1st 2020, Pet Boutique had 104,000 and 520,000 outstanding preferred and common shares respectively. The following transactions changed the number of shares outstanding during the year. Declared and issued a 20% common share Feb 1 dividend Apr 30 May 1 "Oct 31 Sold 159,000 common shares for cash Sold 50,000 preferred shares for cash Sold 42,000 common shares for cash. Required: 1. What is the amount of profit available for distribution to the common shareholders? 2. What is the weighted-average number of common shares for the year? 3. What is the earnings per share for the year? Question One: -Share transactions, statement of changes in equity, dividend distribution Williams Manufacturing Inc., was legally incorporated on January 2nd 2020. Its articles of incorporation granted it the right to issue an unlimited number of common shares and 100,000 shares of $14.40 non-cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations. 2020 Jan 12 Issued 40,000 common shares at $4.80 each 20 Issued 6,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $36,000. 31 Issued 80,000 common shares in exchange for land, building and equipment, which have fair market values of $360.000, $480.000, and $48,000 respectively. Mar 4 Purchased equipment at a cost of $8,160 cash. This was thought to be a special bargain price. It was felt that at least $10,800 would normally have had to be paid to acquire this equipment Dec 31 During 2020, the company incurred a loss of $36,000. The Income Summary account was closed. 2021 Jan 4 Issued 5,000 preferred shares at $72 per share Dec 31 The Income Summary account was closed. Profit for 2021 was $216,000 2022 Dec 4 The company declared a cash dividend of $0.12 per share on the common shares payable on December 18h and also declared the required dividend on the preferred shares. 18 Paid the dividends declared on December 4th 31 Profit for the year ended December 31" 2022, was $192,000. The Income Summary and Cash Dividend accounts were closed. Required: 1. Journalize the transactions for the years 2020, 2021 and 2022 2. Prepare the statement of changes in equity for the year ended December 31", 2022