Question
U-Like Corporation presented the following shareholders' equity as at 31 December 2018. Share Capital - Ordinary, $25 par value; 60,000 shares authorized; 50,000 shares issued
U-Like Corporation presented the following shareholders' equity as at 31 December 2018.
Share Capital - Ordinary, $25 par value; 60,000 shares authorized; 50,000 shares issued and outstanding
$1,250,000
Share Premium - Ordinary
50,000
Share Capital - Preference, no par; 30,000 shares authorized, 10%, noncumulative, nonparticipating; 10,000 shares issued and outstanding
600,000
Retained Earnings
370,000
Total Shareholders' Equity
$2,270,000
In 2019, the following transactions affected its shareholders' equity accounts.
2-Jan
Issued 2,000 ordinary shares for $28 cash per share
6-Jan
Exchanged 2,500 preference shares for equipment and merchandise inventory with market value $120,000 and $45,000, respectively.
15-Jan
Purchased 2,500 of its own ordinary shares at $25 cash per share
25-Jan
Directors declared a $3 per ordinary share cash dividend payable on February 28 to the February 9 shareholders of record
28-Feb
Paid the dividend declared on January 25
9-Jul
Sold 1,000 of its treasury shares at $30 cash per share
27-Aug
Sold 1,500 of its treasury shares at $20 cash per share
9-Sep
Directors declared a $2 per share cash dividend payable on October 22 to the September 23 shareholders of record
22-Oct
Paid the dividend declared on September 9
31-Dec
Closed the $12,000 credit balance (from net profit) in the Income Summary account to Retained Earnings.
Required
Prepare journal entries to record each of these transactions for 2019. Narratives are not required.
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