Question

Application Problem 11-2A a-b (Part Level Submission) Pharma Shop Ltd. is a mid-sized public company that had been in operation for many years. On December 31, 2019, it had an unlimited number of common shares authorized and 6,800,000 shares issued at an average value of $30 per share. As well, there were 6,600,000 preferred shares authorized, with 330,000 of them issued at $20 per share. The balance in retained eamings 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 2020, the following transactions affected shareholders' equity: 1. 2. 3. 4. 5. 6. In total, 250,000 new common shares were issued at $35 per share. The preferred dividend for the year was declared and paid. 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 2020, a dividend of $1.40 per share was declared on the common shares. The date of record was December 15, 2020. The dividend will be paid the following year. The company earned a net income of $14,900,000 and had an other comprehensive loss of $175,000 On December 31, 2020, the company declared a two-for-one stock split on common shares. (a) Use a spreadsheet or table format like the one in the first practice problem to track all of the changes in the shareholders' equity accounts in 2020. (If an amount reduces the account balance then enter with negative sign, e.g. -15,000 or in parenthesis, e.g. (15,000).) Number of common shares Number of preferred Shares Preferred shares Accumulated other comprehensive income Date Total Retained Earnings $25,720,000 Dec. 31. 2019 Common Shares 204,000,000 8,750,000 330,000 $ 6,600,000 $ 525,000 6,800,000 250,000 $237,846,000 1. issued common shares 2. preferred share dividends 3. 10% stock dividend on common shares (20,400,000) 4. common share dividend 5a. net income for year 14,900,000 5b. other comprehensive Class) for year (175,000) 6. two-for-one stock split on common shares Dec. 31, 2020

FILL IN THESE BOXES ( Please give in steps ) URGENT

Answer 1

Solution:

	Number of common shares	Common shares	Number of preferred shares	Preferred shares	Retained earnings	Accumulated other comprehensive income	Total
Dec. 31, 2019	6800000	204000000	330000	6600000	26720000	526000	237846000
1. Issue common shares	250000	8750000					8750000
2. preferred share dividends					-660000		-660000
3. 10% stcok dividend	705000	23265000			-23265000		0
4. common share dividend					-10857000		-10857000
5a. Net income for the year					14900000		14900000
5b. Other comprehensive loss for year						-175000	-175000
6. 2 for 1 stock split on common shares	7755000						0
Dec. 31, 2020	15510000	236015000	330000	6600000	6838000	351000	249804000

Excel Poo-2 new - Microsoft Excel 2. General - - Home Insert Page Layout - 7 X Formulas Dala Review View Calculate Now Insert Function AutoSum Recently Financial Logical Text Date & Lookup & Math & More Used - - - - Time - Reference Trig Functions Function Library J24 Define Name Use in Formula Name Manager Create from Selection Defined Names Trace Precedents Show Formulas Trace Dependents Error Checking Watch Remove Arrows Evaluate Formula Window Formula Auditing Calculation calculate Sheet Options Calculation K TLM Pharma Shop Ltd. Common shares Number of preferred shares Preferred shares Retained earnings Accumulated other comprehensive income Total =17*30 EFR 25 330000 =117*20 26720000 5 26000 Number of common shares Dec 31, 2019 6800000 1. Issue common shares 250000 2. preferred share dividends 3. 10% stcok dividend -(F7+F8) 10% 4. common share dividend 5a. Nct income for the year Sb, Other comorehensive loss for year 6. 2 for 1 stock split on common shares -(F10+FB+F7) Dec. 31, 2020 =SUMIF7:F14) 1-F10033 --H72 --F1033 --(F7+FB+F101.4 14900000 -G7+17+17+K7 =G9+8+18+K8 -G919019AKO -610-110-J10+K10 -G11-111-J11+K11 =G12+12+12+K12 -G13-113+J13+K13 -614-114-J14+K14 -SUML7:14) - 175000 =SUM(G7:614) =SUM[H7:H14) =SUM[17:114) =SUM[17:114) SUM(K7:K14) 27 28 N Ready M Sheet335 Sheet336 Sheet337 Sheet338 Sheet339 Sheet340 Sheet341 Sheet342 Sheet343 + EC 4 80% 0 16-51 ENG 12-12-2019 O Type here to search OR A 1