Cullumber Shop Ltd. is a mid-sized public company that had been in operation for many years. On December 31, 2023, it had an unlimited number of common shares authorized and 5.8 million shares issued at an average value of $28 per share. As well, there were 5.6 million preferred shares authorized, with 280,000 of them issued at $19 per share. The balance in retained earnings was $26,690,000. The balance in accumulated other comprehensive income was $539,000. The preferred shares pay an annual dividend of $2 per share. During 2024, the following transactions affected shareholders' equity:
Cullumber Shop Ltd. is a mid-sized public company that had been in operation for many years. On December 31, 2023, it had an unlimited number of common shares authorized and 5.8 million shares issued at an average value of $28 per share. As well, there were 5.6 million preferred shares authorized, with 280,000 of them issued at $19 per share. The balance in retained earnings was $26,690,000. The balance in accumulated other comprehensive income was $539,000. The preferred shares pay an annual dividend of $2 per share. During 2024, the following transactions affected shareholders' equity:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cullumber Shop Ltd. is a mid-sized public company that had been in operation for many years. On December 31, 2023, it had an
unlimited number of common shares authorized and 5.8 million shares issued at an average value of $28 per share. As well, there were
5.6 million preferred shares authorized, with 280,000 of them issued at $19 per share. The balance in retained earnings was
$26,690,000. The balance in accumulated other comprehensive income was $539,000. The preferred shares pay an annual dividend
of $2 per share. During 2024, the following transactions affected shareholders' equity:
1.
2.
3.
4.
5.
6.
(a).
(b1)
In total, 230,000 new common shares were issued at $33 per share.
The preferred dividend for the year was declared and paid.
A 10% common stock dividend was declared when the market price was $33 per share. The shares were distributed one
month after the declaration.
In early December 2024, a dividend of $1.40 per share was declared on the common shares. The date of record was
December 15, 2024. The dividend was to be paid the following year.
The company earned net income of $14,800,000 and had an other comprehensive loss of $140,000.
On December 31, 2024, the company declared a two-for-one stock split on common shares.
Prepare the statement of changes in shareholders' equity for 2024. (Hint: the statement of changes in shareholders' equity will be
similar to the table from part (a) but similar transactions, such as dividends, will be grouped into one line.) (If an amount reduces the
account balance then enter with negative sign, e.g. -15,000 or in parenthesis, e.g. (15,000).)
Transcribed Image Text:Dec. 31, 2023
Common shares issued
Cash dividends
Stock dividend - common shares
Net income
Other comprehensive loss
Stock split on common shares
Dec. 31, 2024
Show Transcribed Text
Shop Ltd.
in Shareholders' Equity
$
$
Preferred
shares
$
Number of
common
shares
Retained
earnings
$
Common shares
Accumulated other
comprehensive
income
$
$
Cullumber
Statement of Changes i
Number of
preferred
shares
Total
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