Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The balance sheet for Tactex Controls Inc., provincially incorporated in 2018, reported the following components of equity on December 31, 2019. Contributed capitali Tactex
The balance sheet for Tactex Controls Inc., provincially incorporated in 2018, reported the following components of equity on December 31, 2019. Contributed capitali Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2019 Preferred shares, $2.2 cumulative, unlimited shares authorized; 21,000 shares issued and outstanding Common shares, unlimited shares authorized; 76,000 shares i issued and outstanding Total contributed capital Retained earnings Total equity $ 393,000 736,000 $1,129,000 379,000 $1,508,000 In 2020 and 2021, the company had the following transactions affecting shareholders and the equity accounts: 2020 Jan. 1 Sold 31,000 common shares at $10.74 per share, 5 The directors declared a total cash dividend of $232,000 payable on Feb. 28 to the Feb. 5 shareholders of record. Dividends had not been declared for the years 2018 and 2019. All of the preferred ahares had been issued during 2018, Feb. 28 Paid the dividends declared on January 5. July 1 Sold preferred shares for a total of $156,900. The average issue price was $20 per share. Dec. 31 Closed the dividend accounts along with the $576,900 credit balance in the Incone Summary account. 2021 Sept. 5 The directora declared the required cash dividend on the preferred shares and a $1.5 per common share cash dividend payable on October 28 to the October 5 shareholders of record. Oct. 28 Paid the dividends declared on September 5. Dec. 31 Closed the Cash Dividends account along with the $543,300 credit balance in the Income Sunary account.
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