Hi the question as it is from book of accounting page 629 ( financial accounting

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Hi the question as it is from book of accounting page 629 ( financial accounting tools for business descion making kimmel) samev problem  11-3A

Problem 11-3A

Record the above transactions, including any entries required to close dividends and net income. (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. Round average cost per share to 2 decimal palces, e.g. 2.25 and final answers to 0 decimal places.)

Date

Account Titles and Explanation

Debit

Credit

June 12

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

(To close net income/(loss).)

Dec. 31

(To close dividends.)

(c)Prepare the statement of changes in equity for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Hi the question as it is from book of accounting page 629 ( financial accounting tools for business descion making kimmel) samev problem  11-3A

Problem 11-3A

Uli Corporation, a publicly traded company, is authorized to issue 193,000 $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 (7,300 shares issued) $408,800 Common shares (67,200 shares issued) 1,075,200 Contributed surplus 25,500 Retained earnings 819,000 Accumulated other comprehensive income 10,200
The following equity transactions occurred in 2018: Feb. 6 Issued 10,400 preferred shares for $624,000. Apr. 6 Issued 19,200 common shares for $566,400. 27 Reacquired and retired 2,700 common shares at $18 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 9,600 common shares in exchange for a building. At the time of the exchange, the building was valued at $162,400 and the common shares at $147,000. 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 $546,000. (a)

Record the above transactions, including any entries required to close dividends and net income. (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. Round average cost per share to 2 decimal palces, e.g. 2.25 and final answers to 0 decimal places.)

Date

Account Titles and Explanation

Debit

Credit

June 12

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

(To close net income/(loss).)

Dec. 31

(To close dividends.)

Explanation / Answer

b) Posting

c) Statement of changes in equity for the year

a) Journal Entry Date Accounts Debit Credit Feb. 6 Cash $   624,000 Preferred shares (10400*56) $    582,400 Contributed surplus $      41,600 (Issue of preferred stock) Apr. 6 Cash $   566,400 Common stock (19200*16) $    307,200 Contributed surplus $    259,200 (Issue of common stock) Apr. 27 Common stock (2700*15) $     40,500 Contributed surplus $       8,100 Cash (2700*18) $      48,600 (Reacquired and retired common shares ) May. 29 Preferred dividend (17700*4*1/2) $     35,400 Preferred dividend payable $      35,400 (Preferred dividend declared) July 1. Preferred dividend payable $     35,400 Cash $      35,400 (Preferred dividend paid) Aug. 22 Building $   162,400 Common stock (9600*16) $    153,600 Contributed surplus $        8,800 (Issued 9,000 common shares in exchange for a building) Dec. 14 No entry Dec. 31 Retained earnings $     35,400 Preferred dividend $      35,400 (Closure of dividend) Dec. 31 Income summary $   546,000 Retained earnings $    546,000 (Closure of net income) Note: Par value of preferred shares=408800/7300=$ 56 per share Par value of common shares=1075200/67200=$ 16 per share

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