Question
The following shareholders' equity accounts are reported by Sandhill Inc. on January 1: Common shares (unlimited authorized, 165,000 issued) $2,640,000 Preferred shares ($4 cumulative, convertible,
The following shareholders' equity accounts are reported by Sandhill Inc. on January 1:
| Common shares (unlimited authorized, 165,000 issued) | $2,640,000 | |
| Preferred shares ($4 cumulative, convertible, 100,000 authorized, 6,000 issued) | 450,000 | |
| Contributed surplusreacquisition of common shares | 32,000 | |
| Retained earnings | 1,270,000 |
The following selected transactions occurred during the year:
| Feb. | 11 | Issued 55,000 common shares at $20 per share. | ||
| Mar. | 2 | Reacquired 20,500 common shares at $22 per share. | ||
| June | 14 | Split the common shares 2 for 1 when the common shares were trading at $30 per share. | ||
| July | 25 | Reacquired 480 preferred shares at $70 per share. | ||
| Sept. | 16 | Reacquired 55,000 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. |
Prepare journal entries for the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Round average per share to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,276.)
| Date | Account Titles and Explanation | Debit | Credit |
| Feb. 11Mar. 2July 25Sept. 16Oct. 27Dec. 13 | |||
| (Issued common shares for cash.) | |||
| Mar. 2 | |||
| (To record reacquisition of common shares.) | |||
| Feb. 11Mar. 2July 25Sept. 16Oct. 27Dec. 13 | |||
| (To record reacquisition of preferred shares.) | |||
| Sept. 16 | |||
| (To record reacquisition of common shares.) | |||
| Feb. 11Mar. 2July 25Sept. 16Oct. 27Dec. 13 | |||
| (To record declaration of stock dividend.) | |||
| Feb. 11Mar. 2July 25Sept. 16Oct. 27Dec. 13 | |||
| (To record distribution of stock dividend.) |
Show how each class of shares will be presented in the shareholders equity section of the balance sheet at December 31.
| Sandhill Inc. Partial Balance Sheet | ||||||
| $ | ||||||
Please answer this question ASAP.
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
Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
