Question

On January 1, 2018, Tarjee Ltd., a private company, had the following shareholders' equity accounts: Preferred shares, $1 noncumulative, unlimited number authorized, none issued Common shares, unlimited number authorized, 2.70 million issued Retained earnings $2,700,000 3,940,000 The following selected transactions occurred during 2018: Jan. 2 Issued 180,000 preferred shares at $25 per share. Feb. 8 Issued 90,000 common shares in exchange for land. On this date, the current value of the land was $184,000. The common shares have not recently traded, but the last time they traded, they sold for $2.50 per share. Mar. 5 Declared the quarterly cash dividend to preferred shareholders of record on March 20, payable April 2. Apr. 18 Issued 402,000 common shares at $3.00 per share. June 5 Declared the quarterly cash dividend to preferred shareholders of record on June 20, payable July 1. Sept. 5 Declared the quarterly cash dividend to preferred shareholders of record on September 20, payable October 1. Oct. 4 Issued 37,000 preferred shares at $25 per share. Dec. 5 Declared the quarterly cash dividend to preferred shareholders of record on December 20, payable January 1. 14 Declared a cash dividend of $0.50 per share to the common shareholders of record on December 31, payable January 10. 31 Net income for the year was $1.03 million. (a) Your answer is partially correct. Try again. Record the above transactions for 2018, including any entries required to close dividends declared and net income to Retained Earnings. (Credit account titles are

Answer 1

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  Jan. 2	Cash		$   4,500,000
  		Preferred Shares (180,000 × $25)		$   4,500,000
  Feb. 8	Land		$       184,000
  		Common Shares (100,000 shares)		$       184,000
  Mar. 5	Dividends Declared(184,000 × $1× 3/12)		$         46,000
  		Dividends Payable		$         46,000
  Apr 2	Dividends Payable		$         46,000
  		Cash		$         46,000
  Apr 18	Cash (400,200 × $3)		$   1,206,000
  		Common Shares		$   1,206,000
  Jun 5	Dividends Declared(184,000 × $1× 3/12)		$         46,000
  		Dividends Payable		$         46,000
  Jul 1	Dividends Payable		$         46,000
  		Cash		$         46,000
  Sep 5	Dividends Declared(184,000 × $1× 3/12)		$         46,000
  		Dividends Payable		$         46,000
  Oct 1	Dividends Payable		$         46,000
  		Cash		$         46,000
  Oct 4	Cash		$       925,000
  		Preferred Shares (37,000 × $25)		$       925,000
  Dec 5	Dividends Declared(221,000*× $1× 3/12)		$         55,250
  		Dividends Payable		$         55,250
  	*1840,000 + 37,000 = 221,000 shares
  Dec 5	Dividends Declared (3,192,000* × $0.50)		$   1,596,000
  		Dividends Payable		$   1,596,000
  	*2,700,000 + 90,000 + 402,000 = 3,192,000 shares
  Closing entries:
  Dec 31	Income Summary		$   1,030,000
  		Retained Earnings		$   1,030,000
  Dec 31	Retained Earnings		$   1,789,250
  		Dividends Declared		$   1,789,250

Answer 2

How come , your preferred share unit come to 184000 , instead of 180,000 in March 5 ??