Cullumber Shop Ltd. is a mid-sized public company that had been in operation for many years. On December 31, 2023, it had anunlimited number of common shares authorized and 5.8 million shares issued at an average value of $28 per share. As well, there were5.6 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.In total, 230,000 new common shares were issued at $33 per share.2.The preferred dividend for the year was declared and paid.3.4.A 10% common stock dividend was declared when the market price was $33 per share. The shares were distributed onemonth after the declaration.In early December 2024, a dividend of $1.40 per share was declared on the common shares. The date of record wasDecember 15, 2024. The dividend was to be paid the following year.5.The company earned net income of $14,800,000 and had an other comprehensive loss of $140,000.6.On December 31, 2024, the company declared a two-for-one stock split on common shares.

Step 1:Initial Shareholders' Equity as of December 31, 2023Common Shares:Authorized:…

Answered: Cullumber Shop Ltd. is a mid-sized…

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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