Question

Record the above transactions for 2018, including any entries required to close dividends declared and net income to Retained Earnings. (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.)

Transaction entries:

Problem 11-4A (Part Level Submission) 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.

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