Ujjal Corporation, a publicly traded company, is authorized to issue an unlimited number of no par value $5 noncumulative preferred shares and an unlimited number of no par value common shares. On February 1, 2011, the general ledger contained the following shareholders' equity accounts:
Preferred shares (8,000 shares issued)
Common shares (70,000 shares issued)
Contributed capital-reacquisition of common shares
Retained earnings
Accumulated other comprehensive income
$ 440,000 1,050,000 75,000 1,000,000 65,000
The following equity transactions occurred during the year ended January 31, 2012:
Feb. 28 Issued 2,500 preferred shares for $150,000.
Apr. 12 Issued 100,000 common shares for $3.2 million.
May 25 Issued 2,500 common shares in exchange for land. At the time of the exchange, the land was valued at $75,000 and the common shares at $80,000.
Sept. 12 Reacquired and retired 45,000 common shares for $1,275,000. (Round the average cost per share to the nearest cent.)
Dec. 29 Declared a $2.50 per share dividend to the preferred shareholders of record at January 15, payable February 1.
Jan. 31 A loss of $5,000 was incurred for the year.
Instructions
(a) Record the above transactions for the year ended January 31, 2012, including any required closing entries.
(b) Open T accounts and post to the shareholders' equity accounts.
(c) Prepare the statement of changes in equity for the year.
(d) Prepare the shareholders' equity section of the statement of financial position at January 31, 2012.