Question
The following shareholders' equity accounts are reported by Branch Inc. on January 1: Common shares (unlimited authorized, 150,000 issued) $2,400,000 Preferred shares ($4 cumulative, convertible,
The following shareholders' equity accounts are reported by Branch Inc. on January 1:
Common shares (unlimited authorized, 150,000 issued) | $2,400,000 |
Preferred shares ($4 cumulative, convertible, 100,000 authorized, 5,000 issued) | 375,000 |
Contributed surplusreacquisition of common shares | 30,000 |
Retained earnings | 1,275,000 |
The following selected transactions occurred during the year:
Feb. 11 | Issued 50,000 common shares at $20 per share. |
Mar. 2 | Reacquired 20,000 common shares at $22 per share. |
May 3 | Shareholders converted 1,000 preferred shares into 4,000 common shares. The fair value per preferred share was $80; per common share, $24. |
June 14 | Split the common shares 2-for-1 when the common shares were trading at $30 per share. |
July 25 | Reacquired 500 preferred shares at $70 per share. |
Sept. 16 | Reacquired 50,000 common shares for $17 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 $19 per share. |
Dec. 13 | Distributed the stock dividend declared on October 27. The fair value of the common shares on December 13 was $21 per share. |
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Show how each class of shares will be presented in the shareholders equity section of the balance sheet at December 31.
Branch Inc. Partial Balance Sheet December 31 | ||
Shareholders' equity | ||
Accumulated Other Comprehensive IncomeTotal Share CapitalShare CapitalOwner's DrawingsContributed SurplusReacquired Shares | ||
$ | ||
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