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The equity accounts of Headland SE on January 1, 2017, were as follows. Share CapitalPreference (9%, 50 par, cumulative, 10,300 shares authorized) 385,000 Share CapitalOrdinary
The equity accounts of Headland SE on January 1, 2017, were as follows.
Share CapitalPreference (9%, 50 par, cumulative, 10,300 shares authorized) | 385,000 | |
Share CapitalOrdinary (1 stated value, 1,923,100 shares authorized) | 1,330,100 | |
Share PremiumPreference | 148,900 | |
Share PremiumOrdinary | 1,493,600 | |
Retained Earnings | 1,844,800 | |
Treasury SharesOrdinary (20,400 shares) | 46,920 |
During 2017, the corporation had the following transactions and events pertaining to its equity.
Feb. 1 | Issued 25,300 ordinary shares for 75,900. | |
Apr. 14 | Sold 8,500 treasury sharesordinary for 46,400. | |
Sept. 3 | Issued 7,100 ordinary shares for a patent valued at 41,400. | |
Nov. 10 | Purchased 1,000 ordinary shares for the treasury at a cost of 5,700. | |
Dec. 31 | Determined that net income for the year was 460,500. |
No dividends were declared during the year.
Question 11 The equity accounts of Headland SE on January 1, 2017, were as follows. Share Capital-Preference (9%, 50 par, cumulative, 10,300 shares 385,000 authorized) Share Capital-Ordinary (1 stated value, 1,923,100 shares authorized) 1,330,100 Share Premium-Preference 148,900 Share Premium-Ordinary 1,493,600 Retained Earnings 1,844,800 Treasury Shares-Ordinary (20,400 shares) 46,920 During 2017, the corporation had the following transactions and events pertaining to its equity. Feb. 1 Issued 25,300 ordinary shares for 75,900. Apr. 14 Sold 8,500 treasury shares-ordinary for 46,400. Sept. 3 Issued 7,100 ordinary shares for a patent valued at 41,400. Nov. 10 Purchased 1,000 ordinary shares for the treasury at a cost of 5,700. Dec. 31 Determined that net income for the year was 460,500. No dividends were declared during the year. Journalize the transactions and the closing entry for net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Feb. 1 Cash 75,900 Share Capital-Ordinary 25,300 Share Premium-Ordinai 50600 Apr. 14 v Cash 46,400 Treasury Shares 21250 Share Premium-Treasur 25150 Sept. 3 v Patents 41,400 Share Capital-Ordinary 7,100 Share Premium-Ordinai 34300 Nov. 10 v Treasury Shares 5,700 Cash 5,700 Dec. 31 Income Summary 460,500 Retained Earnings 460,500 Enter the beginning balances in the accounts, and post the journal entries to the equity accounts. (Use 35 for the posting reference.) (Post entries in the order of journal entries presented in the previous part.) Share Capital-Preference Date Explanation Ref Debit Credit Balance Balance Jan. 1 Share Capital-Ordinary Date Explanation Ref Jan. 1 Balance Debit Credit Balance 1,330,100 Feb. 1 15 Debit Credit Balance Sept. 3 v J5 Share Premium-Preference Date Explanation Ref Jan. 1 Share Premium-Ordinary Date Explanation Ref Jan. 1 Balance Balance Debit Credit Balance Feb. 1 v 25 Sept. 3 15 Share Premium-Treasury Date Explanation Ref Debit Credit Balance 35 Retained Earnings Date Explanation Ref Debit Credit Balance Jan. 1 | Balance Dec. 31 J5 Treasury Shares Date Explanation Ref Balance Debit Credit Balance 15 25 Prepare an equity section at December 31, 2017. HEADLAND SE Statement of Financial Position (Partial)Step by Step Solution
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