Southern Exposure Ltd. begins operations on January 2, 2016. During the year, the following transactions affect shareholders' equity:
1. Southern Exposure's articles of incorporation authorizes the issuance of 1 million common shares, and the issuance of 100,000 preferred shares, which pay an annual dividend of $2 per share.
2. A total of 240,000 common shares are issued for $5 a share.
3. A total of 15,000 preferred shares are issued for $14 per share.
4. The full annual dividend on the preferred shares is declared.
5. The dividend on the preferred shares is paid.
6. A dividend of $0.10 per share is declared on the common shares but is not yet paid.
7. The company has net income of $150,000 for the year. (Assume sales of $750,000 and total operating expenses of $600,000).
8. The dividends on the common shares are paid.
9. The closing entry for the dividends declared accounts is prepared.
REQUIRED:
a.) Prepare journal entries to record the above transactions, including the closing entries for net income and dividends declared.
b.) Prepare the shareholders' equity section of the statement of financial position as at December 31, 2016.
Southern Exposure Ltd. begins operations on January 2, 2016. During the year, the following transactions affect...
AP11-6 (Equity transactions) Southern Exposure Ltd. begins operations on January 2, 2016. During the year, the following transactions affect shareholders’ equity: 1. Southern Exposure’s articles of incorporation authorizes the issuance of 1 million common shares, and the issuance of 100,000 preferred shares, which pay an annual dividend of $2 per share. 2. A total of 240,000 common shares are issued for $5 a share. 3. A total of 15,000 preferred shares are issued for $14 per share. 4. The full...
Application Problem 11-13A a-b (Part Level Submission) Southwestern Exposure Ltd. began operations on January 2, 2020. During the year, the following transactions affected shareholders' equity: 1. Southwestern Exposure's articles of incorporation authorize the issuance of 1,000,000 common shares, and the issuance of 235,000 preferred shares, which pay an annual dividend of $2.00 per share. 2. A total of 255,000 common shares were issued for $5 a share. 3. A total of 15,000 preferred shares were issued for $13 per share....
Exercise 15-14
On January 1, 2020, Pina Colada Ltd. (a public company) had the
following shareholders’ equity accounts:
Preferred shares, $5 non–cumulative, unlimited number
authorized, none issued
0
Common shares, unlimited number authorized, 740,000 issued
$
5,920,000
Retained earnings
1,259,000
Accumulated other comprehensive income
150,000
The following selected transactions occurred during 2020:
Jan. 2
Issued 100,000 preferred shares at $100 per share.
Mar. 5
Declared the quarterly cash dividend to preferred shareholders
of record on March 20, payable April 1....
The ! parti Problem 13-8A At January 1, 2015, Computer Metals Processing Ltd.'s balance sheet reported the foll At January 1, 2015, Computer Meta shareholders' equity: Ace Ret Recording the issuance of shares, allocating cash dividends calculating book value, preparing the liability and shareholders' equity sections of the balance sheet Со 2. Total shareholders' equity, $2,430,000 $ 200,00 Shareholders' Equity Contributed capital: Preferred shares, $1.25, cumulative (2 years in arrears), liquidation price of $20, 100,000 shares authorized, 30,000 shares issued...
The following transactions relate to the stockholders' equity transactions of Lindsay Corporation for 2018, its first year of existence. Articles of incorporation are filed with the state. The state authorized the issuance of 10,000 shares of 6%, $50 par value preferred stock and 200,000 shares of $1 par value common stock. January 28 40,000 shares of common stock are issued for $15 per share. 70,000 shares of common stock are issued in exchange for land and buildings that have a...
Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 113,000 shares of $10 par common stock. 9,500 shares of $150 par, 5 percent, noncumulative preferred stock. On June 10, Weaver Corporation declared the annual cash dividend on its 9,500 shares of preferred stock and a $3 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20. Required a. Determine the total amount...
a) Prepare journal entries to record the transactions above.
Swifty Corp. reported the following amounts in the shareholders' equity section of its December 31, 2019 SFP: Preferred shares, $7 dividend (12,000 shares authorized, 2,400 shares issued) Common shares (unlimited authorized, 29,000 issued) Contributed surplus Retained earnings Accumulated other comprehensive income Total $242,400 696,000 47,100 300,000 66,000 $1,351,500 During 2020, the company had the following transactions that affect shareholders' equity. LI, 2019 1. Paid the annual 2019 $7 per share dividend...
During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to shareholders’ equity. The articles of incorporation authorized the issue of 7 million common shares, $1 par per share, and 3 million preferred shares, $50 par per share. Feb. 12 Sold 2 million common shares, for $9 per share. 13 Issued 42,000 common shares to attorneys in exchange for legal services. 13 Sold 82,000 of its common shares and 3,000 preferred shares for a...
On January 1, 2018, Sweetwater Ltd., a private company, had the following shareholders' equity accounts: Preferred shares, $1 noncumulative, unlimited number authorized, none issued Common shares, unlimited number authorized, 2.06 million issued Retained earnings $2,860,000 3,470,000 The following selected transactions occurred during 2018: Jan. 2 Issued 210,000 preferred shares at $25 per share. Feb. 8 Issued 100,000 common shares in exchange for land. On this date, the current value of the land was $210,000. The common shares have not recently...
Ayayai Company reported the following amounts in the
stockholders’ equity section of its December 31, 2016, balance
sheet.
Preferred stock, 10%, $100 par (10,000 shares authorized, 1,800
shares issued)
$180,000
Common stock, $5 par (93,000 shares authorized, 18,600 shares
issued)
93,000
Additional paid-in capital
130,000
Retained earnings
467,000
Total
$870,000
During 2017, Ayayai took part in the following transactions
concerning stockholders’ equity.
1.
Paid the annual 2016 $10 per share dividend on preferred stock
and a $2 per share dividend...