Question

Grouper Corporation showed the following information on its financial statements on December 31, 2021:

Preferred Shares, no par value $8 cumulative, 400,000 shares authorized,       140,000 shares issued and outstanding		$28,000,000
Common Shares, no par value, unlimited shares authorized,       460,000 shares issued and outstanding		$12,420,000

The following transactions occurred, in the order given, during 2022:

(a)		April 15: Received subscriptions and down payments for 117,000 common shares at $36 per share. The subscription contracts call for 65% of the subscription price to be paid upon receipt, and the remaining 35% to be paid on June 30. In the event of default on the subscriptions, the company will retain the down payment.
(b)		May 1: Issued 150,000 preferred shares at $245 per share.
(c)		June 30: Received payment for 91,000 of the subscribed common shares; the remaining 26,000 defaulted. Issued the share certificates for the appropriate number of shares.
(d)		August 5: Repurchased and cancelled 15,000 common shares at a cost of $20 per share.
(e)		September 15: Declared dividends for preferred shares (dividends had not been paid the previous year). Also declared $1.50 per share dividend for common shares. Both dividends are to be paid on November 1 to shareholders of record on October 1.
(f)		If the preferred shares had a $200 par value, what would be the journal entry for the May 1 issuance of preferred shares in part (b)?

Prepare the journal entries to record the above transactions for Grouper Corporation for 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round average share price to 2 decimal places for intermediate calculations, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.)

No.	Account Titles and Explanation	Debit	Credit
(a)
	(To record sale of shares on a subscription basis)
	(To record collection of down payment)
(b)
(c)
	(To record receipt of cash for the final installment on subscribed shares)
	(To record default on subscribed shares)
	(To record issuance of common shares for those subscribed and paid for)
(d)
(e)
	(To record dividend declared)
	(To record dividend paid)
(f)

Answer 1

Credit Taus. Date Groupes Corporation Genceal Journal for the year 2022 Particulars Desit Abrilist stocle subscriptions receiveable (Boy) 42/2000 To Common Stock scesscribed 42/2000 To record sale of shaus on a) Suebscription sani's Cash the Dr (654.) 2737800 273780 To Stocle subs. Receivable X 7o decorel collection of down payment May Paush (180000 x$245) 36750000 To Preferred stock (A record issuance of prefersed stock) June 30 Cash Ale (91000 x 36x351) 11146600 To stock Seebs Receivable, 1146600 To second receipt of case for t the final installment on seltecebal 36710000 (6) o shares

6 of you (d) Aug 5 are pron stacle Seelscribed (260007 36) 936000 To subscistion Receivable 26000 X34X35) |327600 To Add. paid in Cap. for Subs Default (To Decord delautt on subscribed shaves) (26000 x 368654.) Comonen Stocke seebicised (9700 X36) 32760vo To ommon stalle (alerox36) 3276000 P secard ssuance common staves for those subscribed and paid for Preasury stocke (15000 x 20) 309con Зоо аю TO Cash To recose re-purchase and causellation) O geshaus 15a86ooo Redeemed Earnings ... Joooo Oorblevedo Palaeble (76 second diotelevd dedored rastero Dividends Payable Jasnow (70 record the dividend paid) 36730000 Cash ($ 150000 X245) Зеравер О To Bleaned stock (150000x20) 671000 Po Pocid vin Coop.in Excuse] Pas- Befessed stock to record issuance of poffered stocheat) precium e sepis & Moul Total Divided 804000 * Dioideuda Outstanding commou llaves on 3/0,4 460000 Add Iesued 91000 - 1000 less Beanary stacle 536000 Doidud per common share Reference shares as on 31 Dec 21 (Capital) 18000000 issued (capital 36780000 @ 8%. 164750000 5180000 5984000