Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The balance sheet for Tactex Controls Inc., provincially incorporated in 2021, reported the following components of equity on December 31, 2022. Contributed capital: Tactex

image

The balance sheet for Tactex Controls Inc., provincially incorporated in 2021, reported the following components of equity on December 31, 2022. Contributed capital: Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2022 Preferred shares, $1.8 cumulative, unlimited shares authorized; 17,000 shares issued and outstanding Common shares, unlimited shares authorized; 72,000 shares issued and outstanding Total contributed capital Retained earnings Total equity $ 389,000 732,000 $1,121,000 375,000 $1,496,000 In 2023 and 2024, the company had the following transactions affecting shareholders and the equity accounts: 2023 Jan. 1 Sold 27,000 common shares at $10.34 per share. 5 The directors declared a total cash dividend of $228,000 payable on Feb. 28 to the Feb. 5 shareholders of record. Dividends had not been declared for the years 2021 and 2022. A11 of the preferred shares had been issued during 2021. Feb. 28 Paid the dividends declared on January 5. July 1 Sold preferred shares for a total of $156,500. The average issue price was $20 per share. Dec. 31 Closed the dividend accounts along with the $576,500 credit balance in the Income Summary account. 2024 Sept. 5 The directors declared the required cash dividend on the preferred shares and a $1.1 per common share cash dividend payable on October 28 to the October 5 shareholders of record. 28 Paid the dividends declared on September 5. Oct. Dec. 31 Closed the Cash Dividends account along with the $542,900 credit balance in the Income Summary account. Required: 1. Prepare journal entries to record the transactions and closings for 2023 and 2024. The company uses a cash dividends account to record declared dividends. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 Record the issuance of 27,000 common shares Note: Enter debits before credits. Date Jan 01, 2023 General Journal Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Tactex Controls Inc Journal Entries for 2023 and 2024 2023 Transactions Jan 1 Date Account Titles an... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles Volume II

Authors: Larson Kermit, Jensen Tilly

14th Canadian Edition

71051570, 0-07-105150-3, 978-0071051576, 978-0-07-10515, 978-1259066511

More Books

Students also viewed these Accounting questions