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Corp. has the following capital structure at the beginning of 2021: Preferred shares, $3, no par value, cumulative, convertible, 20,000 shares authorized, 6,000 shares issued and outstanding. $ 300,000 Common shares, no par value, unlimited shares authorized, 40,000 shares issued and outstanding. Contributed surplus from reacquisition of common shares. Total contributed capital. Retained earnings. Total shareholders' equity. wwwww. 510,000 5,000 815,000 340,000 $1.155.000 Required: Record the following transactions which occurred consecutively this year. Show all calculations. I a) A total cash dividend of $ 100,000 was declared. The preferred dividends were in arrears for the year 2020. Calculate the amount of dividend received by preferred and common shareholders. Explain whether there is any unpaid dividend for preferred and common shareholders. b) On Mar 1, Congo sold 10,000 common shares for $12 per share. c) On April 1, a 10% common stock dividend was declared, distributable on April 20. The market value of the common shares was $16 and $18 a share on April 1 and 20 respectively. Record the journal entries on April 1 and April 20.

Corp. has the following capital structure at the beginning of 2021: Preferred shares, $3, no par value, cumulative, convertible, 20,000 shares authorized, 6,000 shares issued and outstanding. $ 300,000 Common shares, no par value, unlimited shares authorized, 40,000 shares issued and outstanding. Contributed surplus from reacquisition of common shares. Total contributed capital. Retained earnings. Total shareholders' equity. wwwww. 510,000 5,000 815,000 340,000 $1.155.000 Required: Record the following transactions which occurred consecutively this year. Show all calculations. I a) A total cash dividend of $ 100,000 was declared. The preferred dividends were in arrears for the year 2020. Calculate the amount of dividend received by preferred and common shareholders. Explain whether there is any unpaid dividend for preferred and common shareholders. b) On Mar 1, Congo sold 10,000 common shares for $12 per share. c) On April 1, a 10% common stock dividend was declared, distributable on April 20. The market value of the common shares was $16 and $18 a share on April 1 and 20 respectively. Record the journal entries on April 1 and April 20.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Congo Corp. has the following capital structure at the beginning of 2021: Preferred shares, $3, no par value, cumulative, convertible, 20,000 shares authorized, 6,000 shares issued and outstanding. $ 300,000 Common shares, no par value, unlimited shares authorized, 40,000 shares issued and outstanding. Contributed surplus from reacquisition of common shares.. Total contributed capital. Retained earnings... Total shareholders' equity. . ******** 510,000 5,000 815,000 340,000 $1.155.000 Required: Record the following transactions which occurred consecutively this year. Show all calculations. I a) A total cash dividend of $ 100,000 was declared. The preferred dividends were in arrears for the year 2020. Calculate the amount of dividend received by preferred and common shareholders. Explain whether there is any unpaid dividend for preferred and common shareholders. b) On Mar 1, Congo sold 10,000 common shares for $12 per share. c) On April 1, a 10% common stock dividend was declared, distributable on April 20. The market value of the common shares was $16 and $18 a share on April 1 and 20 respectively. Record the journal entries on April 1 and April 20. d) On August 1, 2021, half of preferred shares were converted to common shares. Each preferred share is converted to two common shares. Record the journal entry for conversion of shares. e) On November 1, 2021, average book value per common share is $12.79. Oxford reacquired 2,000 common shares at $17 per share. Contributed surplus balance includes $5,000 from share retirement in 2020 when Oxford paid less then book value per share. Record the appropriate journal entry.
Transcribed Image Text:Congo Corp. has the following capital structure at the beginning of 2021: Preferred shares, $3, no par value, cumulative, convertible, 20,000 shares authorized, 6,000 shares issued and outstanding. $ 300,000 Common shares, no par value, unlimited shares authorized, 40,000 shares issued and outstanding. Contributed surplus from reacquisition of common shares.. Total contributed capital. Retained earnings... Total shareholders' equity. . ******** 510,000 5,000 815,000 340,000 $1.155.000 Required: Record the following transactions which occurred consecutively this year. Show all calculations. I a) A total cash dividend of $ 100,000 was declared. The preferred dividends were in arrears for the year 2020. Calculate the amount of dividend received by preferred and common shareholders. Explain whether there is any unpaid dividend for preferred and common shareholders. b) On Mar 1, Congo sold 10,000 common shares for $12 per share. c) On April 1, a 10% common stock dividend was declared, distributable on April 20. The market value of the common shares was $16 and $18 a share on April 1 and 20 respectively. Record the journal entries on April 1 and April 20. d) On August 1, 2021, half of preferred shares were converted to common shares. Each preferred share is converted to two common shares. Record the journal entry for conversion of shares. e) On November 1, 2021, average book value per common share is $12.79. Oxford reacquired 2,000 common shares at $17 per share. Contributed surplus balance includes $5,000 from share retirement in 2020 when Oxford paid less then book value per share. Record the appropriate journal entry.
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