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The balance sheet for Tactex Controls Inc., provincially incorporated in 2 0 2 1 , reported the following components of equity on December 3 1
The balance sheet for Tactex Controls Inc., provincially incorporated in reported the following components of equity on
December
In and the company had the following transactions affecting shareholders and the equity accounts:Jan. Sold common shares at $ per share.
mathrm The directors declared a total cash dividend of $ payable on Feb. to the Feb.
shareholders of record. Dividends had not been declared for the years and All
of the preferred shares had been issued during
Feb. Paid the dividends declared on January
July Sold preferred shares for a total of $ The average issue price was $ per share.
Dec. Closed the dividend accounts along with the $ credit balance in the Income Summary
account.
Sept. The directors declared the required cash dividend on the preferred shares and a $ per
common share cash dividend payable on October to the October shareholders of record.
Oct. Paid the dividends declared on September
Dec. Closed the Cash Dividends account along with the $ credit balance in the Income
Summary account. Required:
Prepare journal entries to record the transactions and closings for and The company uses a cash dividends account to
record declared dividends.
Journal entry worksheet
Record the issuance of common shares
Note: Enter debits before credits. Prepare a statement of changes in equity for the year ended December Amounts to be deducted should be indicated by
a minus sign. Prepare the equity section of the company's balance sheet as of December The balance sheet for Tactex Controls Inc., provincially incorporated in reported the following components of equity on December
Tactex Controls Inc.
Equity Section of the Balance Sheet
December
Contributed capital:
Preferred shares, $ cumulative, unlimited shares authorized; shares issued and outstanding $
Common shares, unlimited shares authorized; shares issued and outstanding
Total contributed capital $
Retained earnings
Total equity $
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