Question
.The shareholders' equity of Saturn Corporation as of December 31, 2013, follows: Preferred shares, $4, noncumulative 20,000 shares authorized, 4,000 shares issued$200,000 Common shares, unlimited
.The shareholders' equity of Saturn Corporation as of December 31, 2013, follows:
Preferred shares, $4, noncumulative 20,000 shares
authorized, 4,000 shares issued$200,000
Common shares, unlimited shares authorized,
100,000 shares issued 1,000,000
Common shares, 50000 class B, authorized, 20000 issued250000
Total contributed capital1450,000
Retained earnings 1 616,900
Total shareholders' equity $3,066,900
Saturn Corporation completed the following transactions during 2014:
Feb.6Declared the required annual cash dividend on preferred shares and a $60000 cash dividend on the common shares. The rate of dividend will remain same for both classes of shares.
26Paid the cash dividend that was declared on February 6.
Jun.4Purchased 4,000 of its own class A common shares for $15.25 per share.
Jul.5Distributed a 2-for-1 stock split on the class B common shares.
Dec. 31Closed out the income summary account with a credit balance of 148,000.
Prepare the journal entries and the shareholders' equity section of the balance sheet of Saturn Corporation as of December 31, 2014.7 Marks
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