Question

Duffy Dog Corporation, a publicly traded company, is authorized to issue 190,000 $4 cumulative preferred shares and an unlimited number of common shares. On January 1, 2018, the general ledger contained the following shareholders' equity accounts: Preferred shares (7,800 shares issued) $421,200 Common shares (77,000 shares issued) 1,078,000 Contributed surplus 23.100 Retained earnings 864,000 Accumulated other comprehensive income 10,100 The following equity transactions occurred in 2018: Feb. 6 Issued 10,200 preferred shares for $622,200. Apr. 6 Issued 22,000 common shares for $605,000. 27 Reacquired and retired 2,700 common shares at $16 per share. May 29 Declared a semi-annual cash dividend to the preferred shareholders of record at June 12, payable July 1. Aug. 22 Issued 8,400 common shares in exchange for a building. At the time of the exchange, the building was valued at $164,700 and the common shares at $149,000. Dec. 14 The board of directors decided there were insufficient funds to declare the semi-annual dividend to the preferred shareholders. 31 Net income for the year was $570,000.
Please fill the spot in red and briefly explain how to get the answer. Thanks!

Answer 1

Date	Accounts Titles and Explanation	Debit	Credit
Apr. 27	Common Shares	$45,900		(2,700 x $17)
	Contributed Surplus		$2,700	Balance
	Cash		$43,200	(2,700 x $16)
Working
	Common Share (77,000)	$1,078,000
	Common Share (22,000)	$605,000
		$1,683,000
		99,000
	Average share price	$17