Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wildhorse Shop Ltd. is a mid-sized public company that had been in operation for many years. On December 31, 2023, it had an unlimited

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Wildhorse Shop Ltd. is a mid-sized public company that had been in operation for many years. On December 31, 2023, it had an unlimited number of common shares authorized and 6.8 million shares issued at an average value of $30 per share. As well, there were 6.6 million preferred shares authorized, with 330,000 of them issued at $20 per share. The balance in retained earnings was $26,720,000. The balance in accumulated other comprehensive income was $526,000. The preferred shares pay an annual dividend of $2 per share. During 2024, the following transactions affected shareholders' equity: 1. In total, 250,000 new common shares were issued at $35 per share. 2. The preferred dividend for the year was declared and paid. 3. 4. A 10% common stock dividend was declared when the market price was $33 per share. The shares were distributed one month after the declaration. In early December 2024, a dividend of $1.40 per share was declared on the common shares. The date of record was December 15, 2024. The dividend was to be paid the following year. 5. The company earned net income of $14,900,000 and had an other comprehensive loss of $175,000. 6. On December 31, 2024, the company declared a two-for-one stock split on common shares. Number of commo n shares shares Common sha Number of preferred Preferred sha Retained earni res res ngs Accumulated ot her comprehens ive income Total Dec. 31, 2023 6800000 204000000 330000 6600000 26720000 1. Issue common shares 250000 8750000 2. Preferred share dividends 3. 10% stock dividend 4. Common share dividend 705000 23265000 23784600 526000 0 8750000 5a. Net income for the year 5b. Other comprehensive loss fo r year 6. 2 for 1 stock split on common shares -660000 -23265000 -10857000 -10857000 14900000 14900000 -175000 -175000 -660000 0 Dec. 31, 2024 7755000 0 15510000 236015000 330000 6600000 6838000 351000 24980400 0 Prepare the statement of changes in shareholders' equity for 2024. (Hint: the statement of changes in shareholders' equity will be similar to the table from part (a) but similar transactions, such as dividends, will be grouped into one line.) (If an amount reduces the account balance then enter with negative sign, e.g. -15,000 or in parenthesis, e.g. (15,000).) Wildhorse Statement of Changes i Dec. 31, 2023 Common shares issued Cash dividends Stock dividend - common shares Net income Other comprehensive loss Stock split on common shares Dec. 31, 2024 Number of common Number of preferred shares Common shares shares se Shop Ltd. s in Shareholders' Equity Preferred shares I 6A Retained earnings Accumulated other comprehensive income SA Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Managerial Accounting Concepts

Authors: Edmonds, Tsay, olds

6th Edition

71220720, 78110890, 9780071220729, 978-0078110894

More Books

Students also viewed these Accounting questions