Question

UWOUL html Grammarly Now Tab MyLab & Mastering... Q Justin_grechi Quizlet M McGraw-Hill Connect #2 (Weighted 3%) Zen Aerospace Corporation reported the following equity account balances on December 31, 2014: Saved Preferred shares, $3.60 cumulative, unlimited shares authorized Common shares, unlimited shares authorized, 20,500 shares issued and outstanding 565,800 Relained earnings 325,000 In 2020, the company had the following transactions affecting shareholders and the shareholders' equity accounts: Jan. 1 Purchased and retired 2,100 common shares al $36 per share. 14 The directors declared an 8% share dividend distributable on February 5 to the January 30 shareholders of record. The shares were trading al $45.70 per share. 30 Date or record regarding the 8% share dividend. Feb. 5 Date of distribution regarding the xx share dividend. July 6 Sold 5,100 preferred shares at $61 per share Sept. 5 The directors declared a total cash dividend of $48.000 payable on October 5 1 The September 20 shareholders of record. Oct. 5 The cash dividend declared on September 5 was paid. ---- Closed the $166,500 credil balance in the Profit Summary account to 31 Closed the dividend accounts. --- - - - Required 1. Prepare journal entries to record the transactions and closings for 2020 (assume the retirements were the first ever recorded by Zen Aerospace). Assume share dividends and cash dividends account is used when dividends are declared. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) < Prev = 2 of 3 - Next > 345555411_143167....jpg g 8 34597269 28R963.jpg 4597269 831296.jpg acer

Answer 1

1.

Journal Entries
Date	Accounts	Debit	Credit
Jan. 1	Common Stock Dr	$57,960		=565800/20500*2100
	Retained Earnings Dr	$17,640		Balance
	To Cash		$75,600	=2100*36
	(Being 2100 shares purchased and retired @ $36 per share.)
Jan. 14	Dividends Dr	$67,270		=(20500-2100)*$45.7*8%
	To Dividend Payable		$67,270
	(Being dividend declared by directors @ 8% and shares trading at $45.7 per share.)
Feb. 5	Dividend Payable Dr	$67,270
	To Cash		$67,270
	(Being Dividend distributed.)
July 6	Cash Dr	$3,11,100		=5100*61
	To Preference Share Capital		$18,360	=5100*3.6
	To Preference Share Premium		$2,92,740	Balance
	(Being issued 5100 $3.6 preference shares @ $61 per share.)
Sep. 5	Dividends Dr	$48,000
	To Dividend Payable		$48,000
	(Being Dividend declared by directors.)
Oct. 5	Dividend Payable Dr	$48,000
	To Cash		$48,000
	(Being Dividend distributed.)
Dec. 31	P&L Dr	$4,66,600
	To Retained Earnings		$4,66,600
	(Being closed P&L balance to Retained Earnings.)
Dec. 31	Retained Earnings Dr	$1,15,270		=67270+48000
	To Dividends		$1,15,270
	(Being Dividends account closed.)

2.

ZEN AEROSPACE CORPORATION
Statement of Changes in Equity
For year ended December 31, 2020
	Preferred Shares	Common Shares	Retained Earnings	Total Equity
Balance, January 1	$0	$5,65,800	$3,25,000	$8,90,800
-Purchase and Retirement of Common Stock	$0	-$57,960	-$17,640	-$75,600
Issuance of Preference Share Capital	$18,360	$0	$0	$18,360
Preference Share Premium	$2,92,740	$0	$0	$2,92,740
Profit for the year	$0	$0	$4,66,600	$4,66,600
-Dividend distributed	$0	$0	-$1,15,270	-$1,15,270
Balance, December 31	$3,11,100	$5,07,840	$6,58,690	$14,77,630