Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following shareholders' equity accounts are reported by Blossom Inc. on January 1: Common shares (unlimited authorized, 135,000 issued) Preferred shares $4 cumulative, convertible, 100,000

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The following shareholders' equity accounts are reported by Blossom Inc. on January 1: Common shares (unlimited authorized, 135,000 issued) Preferred shares $4 cumulative, convertible, 100,000 $2,025,000300,00028,0001,250,000 Retained earnings The following selected transactions occurred during the year: Feb. 11 Issued 45,000 common shares at $19 per share. Mar. 2 Reacquired 18,500 common shares at $21 per share. June 14 Split the common shares 2 for 1 when the common shares were trading at $29 per share. July 25 Reacquired 280 preferred shares at $70 pershare. The following selected transactions occurred during the year: Feb. 11 Issued 45,000 common shares at $19 per share. Mar. 2 Reacquired 18,500 common shares at $21 per share. June 14 Split the common shares 2 for 1 when the common shares were trading at $29 per share July 25 Reacquired 280 preferred shares at $70 per share. Sept. 16 Reacquired 45.000 common shares for $16 per share. Oct. 27 Declared a 5% common stock dividend distributable on December 13 to shareholders of record on November 24. The fair value of the common shares on October 27 was $18 per share. Dec: 13 Distributed the stock dividend declared on October 27. The fair value of the common shares on December 13 was $20 per share. Prepare journal entries for the transactions. (Credit occount titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter O for the amounts. Record journal entries in the order presented in the problem. Round average per share to 2 decimal places, eg. 15.25 and final answers to 0 decimal places, eg. 5.276. List all debit entries before credit entries.) Show how each class of shares will be presented in the shareholders' equity section of the balance sheet at December 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Accounting For Investments Fixed Income Securities And Interest Rate Derivatives Volume 2

Authors: R. Venkata Subramani

1st Edition

047082591X, 978-0470825914

More Books

Students also viewed these Accounting questions

Question

=+Explain the skills needed to create a sustainable personal bran

Answered: 1 week ago