Pad * 68%- 4:02 AM ? edugen.wileyplus.com MESSAGE MY INSTRUCTOR FULL SCREEN PRIN

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Pad * 68%- 4:02 AM ? edugen.wileyplus.com MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Problem 13-4A a-b HW Chapter The following selected account balances relate to the shareholders' equity accounts of Pharoah Corp. at year end 2018 2017 Preferred shares, 3,450 shares in 2018; 2,660 in 2017$345,000 Common shares, 52,200 shares in 2018; 42,500 in 2017 522,000 Retained earnings Cash dividends declared (preferred shares) Dividends payable $266,000 425,000 540,000 385,000 13,300 3,447 Problem 13-4A a-b ble 6A 0A 16,000 4,088 Review Results by Study Objective Additional information: During the year, 790 preferred shares were issued. No preferred shares were repurchased 2. During the year, 20,000 common shares were issued after 10,300 common shares were repurchased at $11 per share Determine the amounts of any cash receipts or payments related to the shareholders' equity accounts in 2018 Issue of common shares Issuance of preferred shares $ Payment of dividends LINK TO TEXT LINK TO TEXT Indicate where each of the cash receipts or payments identified above would be classified on the statement of cash flows or accompanying notes

Explanation / Answer

Solution:

Part 1 --- Amount of any cash receipts or payments related to the shareholder’s equity accounts in 2018

Issue of common shares (Refer Note 1)

$210,300

Issuance of preferred shares

(345,000-266,000)

$79,000

Payment of dividends (3447 + 13300)

$16,747

Note 1 --- Issue of common shares

$$

Common Shares ending 2017

$425,000

Less: Shares repurchased (10,300*$11)

($113,300)

Common shares balance before new issue

$311,700

Plus: New Shares Issued(Bal. figure)

(20,000 Shares)

$210,300

Common Shares ending 2018

$522,000

Cash Receipts from Issuance of Common Share = $210,300

Note 2 --- Dividend when declared should be paid within a prescribed time limit. So the last years dividend payble should be paid during the year.

Part 2 ---

Issue of common shares

Statement of Cash Flows -- under Financing Activities

Issuance of preferred shares

Statement of Cash Flows -- under Financing Activities

Payment of dividends

Statement of Cash Flows -- under Financing Activities

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Issue of common shares (Refer Note 1)

$210,300

Issuance of preferred shares

(345,000-266,000)

$79,000

Payment of dividends (3447 + 13300)

$16,747

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