Question
The balance sheet for Umi Sustainable Seafood Inc. reported the following components of equity on December 31, 2022: Common shares, unlimited shares authorized, 19,500 shares
The balance sheet for Umi Sustainable Seafood Inc. reported the following components of equity on December 31, 2022:
Common shares, unlimited shares authorized, 19,500 shares issued and outstanding | $ | 363,000 | |
Retained earnings | 211,000 | ||
Total equity | $ | 574,000 | |
In 2023, Umi had the following transactions affecting shareholders and the equity accounts:
Jan. | 5 | The directors declared a $3.50 per share cash dividend payable on Feb. 28 to the Feb. 5 shareholders of record. | |
Feb. | 28 | Paid the dividend declared on January 5. | |
July | 6 | Sold 1,000 common shares at $37.90 per share. | |
Aug. | 22 | Sold 1,500 common shares at $27.50 per share. | |
Sept. | 5 | The directors declared a $3.50 per share cash dividend payable on October 28 to the October 5 shareholders of record. | |
Oct. | 28 | Paid the dividend declared on September 5. | |
Dec. | 31 | Closed the $346,700 credit balance in the Income Summary account. | |
31 | Closed the Cash Dividends account. |
Required: 1. Prepare journal entries to record the transactions and closings for 2023. The company uses a Cash Dividends account when dividends are declared.
2. Prepare a statement of changes in equity for the year ended December 31, 2023. (Amounts to be deducted should be indicated by a minus sign.)
3. Prepare the equity section of the corporations balance sheet as of December 31, 2023. (Enter all amounts as positive values.)
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