As of January 1, 2021, the equity section of Superstore Foods Ltd. (SFL) balance sheet contained the following Common stock, 10 million authorized, 2 million issued and outstanding Contributed surplus-from repurchase and cancellation of common shares Preferred stock, $3.50 cumulative dividend, 2 million authorized, 50,000 issued and outstanding Retained earnings Total shareholders' equity $4,400,000 30,000 570,000 3,500,000 $8,500,000 On Feb 1, 2021, SFL sold 100,000 common shares for $600,000 cash. On May 1, 2021, the company spent $520,000 to repurchase 200,000 common shares. These
As of January 1, 2021, the equity section of Superstore Foods Ltd. (SFL) balance sheet contained the following Common stock, 10 million authorized, 2 million issued and outstanding Contributed surplus-from repurchase and cancellation of common shares Preferred stock, $3.50 cumulative dividend, 2 million authorized, 50,000 issued and outstanding Retained earnings Total shareholders' equity $4,400,000 30,000 570,000 3,500,000 $8,500,000 On Feb 1, 2021, SFL sold 100,000 common shares for $600,000 cash. On May 1, 2021, the company spent $520,000 to repurchase 200,000 common shares. These
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:As of January 1, 2021, the equity section of Superstore Foods Ltd. (SFL) balance sheet contained the
following
Common stock, 10 million authorized, 2 million issued and
outstanding
Contributed surplus-from repurchase and cancellation of
common shares
Preferred stock, $3.50 cumulative dividend, 2 million authorized,
50,000 issued and outstanding
Retained earnings
Total shareholders' equity
$4,400,000
30,000
570,000
3,500,000
$8,500,000
On Feb 1, 2021, SFL sold 100,000 common shares for $600,000 cash.
On May 1, 2021, the company spent $520,000 to repurchase 200,000 common shares. These
shares were cancelled immediatelý.
On July 1, 2021, the company repurchased and cancelled 3,000 preferred shares at $10/sh.
On Dec 31, 2021, SFL declared cash dividends of $200,000. The company used separate payable
accounts for each of its shares. Dividends will be paid on Jan 1, 2022.
Required:
Record the journal entries for the above transactions occurring in 2021.
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