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The shareholders' equity accounts of Crane Inc. at December 31, 2020, are as follows: Preferred shares, $3 noncumulative, unlimited number authorized, 2,000 issued $200,000 Common
The shareholders' equity accounts of Crane Inc. at December 31, 2020, are as follows:
Preferred shares, $3 noncumulative, unlimited number authorized, 2,000 issued | $200,000 | ||
Common shares, unlimited number authorized, 160,000 issued | 800,000 | ||
Retained earnings | 520,000 | ||
Accumulated other comprehensive loss | (54,000 | ) |
Crane has a 40% income tax rate. During the following fiscal year, ended December 31, 2021, the company had the following transactions and events: |
Feb. | 1 | Repurchased 10,000 common shares for $40,000. | ||
July | 12 | Announced a 2-for-1 preferred stock split. The market price of the preferred shares at the date of announcement was $150. | ||
Dec. | 1 | Declared the annual cash dividend ($1.50 post-split) to the preferred shareholders of record on January 10, 2022, payable on January 31, 2022. | ||
Dec. | 18 | Declared a 10% stock dividend to common shareholders of record at December 20, distributable on January 12, 2022. The fair value of the common shares was $10 per share. | ||
Dec. | 31 | Determined that for 2021, profit before income tax was $340,000 and other comprehensive income, net of income tax expense of $47,200, was $70,800. |
Prepare a statement of changes in shareholders equity for the year ended December 31, 2021. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
CRANE INC. Statement of Changes in Shareholders Equity |
Preferred Shares | Common Shares | Stock Dividend Distributable | Contributed Surplus Reacquisition of Common Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||
Balance, January 1 | $ | $ | $ | $ | $ | $ | $ | |||||||
Reacquired common shares | ||||||||||||||
Stock split 2 for 1 | ||||||||||||||
Cash dividendspreferred | ||||||||||||||
Stock dividendscommon | ||||||||||||||
Comprehensive income | ||||||||||||||
Balance, December 31 | $ |
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