Question
The following shareholders' equity accounts are reported by Ivanhoe Inc. on January 1: Common shares (unlimited authorized, 132,500 issued): $1,855,000 Preferred shares ($4 cumulative, convertible,
The following shareholders' equity accounts are reported by Ivanhoe Inc. on January 1:
Common shares (unlimited authorized, 132,500 issued): $1,855,000
Preferred shares ($4 cumulative, convertible, 100,000 authorized, 4,300 issued): 322,500
Contributed surplusreacquisition of common shares: 28,600
Retained earnings: 1,253,000
The following selected transactions occurred during the year:
Feb.11 Issued 46,500 common shares at $19 per share.
Mar.2 Reacquired 18,800 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 310 preferred shares at $58 per share.
Sept.16 Reacquired 46,500 common shares for $18 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 $21 per share.
Dec.13 Distributed the stock dividend declared on October 27. The fair value of the common shares on December 13 was $22 per share.
Prepare journal entries for the transactions and 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started