Question

no lavour Analysis Component: Calculate the net assets of able or unfavourable? Explain. component: Calculate the net assets of Labtech Inc. for 2016, 2017), Problem 12-8B Share transactions, CHECK FIGURES: 2. Retained earnings, Dec. 31, - Share transactions, dividends, statement of changes the unty LO2, 3, 4, 5, 6 GURES: 2. Retained earnings, Dec 31, 2020 = $754,500; 3. Equity. 020 = $4,345,500 ace Oil & Gas Corp. began operations in 2018. Its balance sheet reported wing components of en on December 31, 2018 Pace Oil & Gas Corp. Equity Section of the Balance Sheet December 31, 2018 $ 780,000 Contributed capital: Preferred shares. $1.80 non-cumulative, unlimited shares authorized: 25.000 shares issued and outstanding. Common shares, unlimited shares authorized: 162,500 shares issued and outstanding.. Total contributed capital .. Retained earnings......... Total equity ............... 1.755,000 $2,535,000 681.000 $3,216,000

Answer 1

Requirement 1:

Date	Account title and explanation	Debit	Credit
Jan 1,2019	Cash	$570,000
	Common stock [50,000 x $11.40]		$570,000
	[Issuance of common stock]
Jan. 5,2019	Dividends	$191,250
	Dividends payable-preferred [25,000 x $1.80]		$45,000
	Dividends payable-common		$146,250
	[Declaration of cash dividends]
Feb.28,2019	Dividends payable-preferred	$45,000
	Dividends payable-common	$146,250
	Cash		$191,250
	[Payment of cash dividends]
July 1,2019	Cash	$486,000
	Preferred stock		$486,000
	[Issuance of preferred stock]
Dec 31,2019	Income summary	$959,250
	Dividends		$191,250
	Retained earnings		$768,000
	[To close dividend account and income summary account]
Sept.5,2020	Dividends	$263,250
	Dividends payable-preferred [40,000* x $1.80]		$72,000
	Dividends payable-common [162,500+50,000] x $0.90		$191,250
	[Declaration of cash dividends]
Oct.5,2020	Dividends payable-preferred	$72,000
	Dividends payable-common	$191,250
	Cash		$263,250
	[Payment of cash dividends]
Dec.31,2020	Retained earnings	$503,250
	Dividends		$263,250
	Income summary                                             (Debit balance)		$240,000
	[To close dividend account and income summary account]

*

*Outstanding preferred shares
Beginning	25,000
Issued on July 1 [$486,000/32.40]	15,000
Total	40,000

Requirement 2:

Pace Oil & Gas Corp.
Statement of changes in equity
For the year ended December 31,2020
	Common stock	Preferred stock	Retained earnings	Total
Balance as on 1/1/19	$1,755,000	$780,000	$681,000	$3,216,000
Jan 1,2019	$570,000			$570,000
July 1,2019		$486,000		$486,000
Dec 31,2019			$768,000	$768,000
Dec.31,2020			($503,250)	($503,250)
Total	$2,325,000	$1,266,000	$945,750	$4,536,750

Requirement 3:

Pace Oil & Gas Corp.
Balance sheet (Partial)
For the year ended December 31,2020
Stockholders' equity:
Paid-in capital:
Preferred shares	$1,266,000
Common shares	$2,325,000
Total paid in capital		$3,591,000
Retained earnings		$945,750
Total stockholders' equity		$4,536,750