Equity transactions, Statement of Changes in Shareholders' Equity The December 31, 2023 shareholders' equity section of Bossman Inc.'s balance sheet is shown below: Preferred shares, $10 non-cumulative, 500 issued $50,000 Common shares, 20,000 issued 200,000 Retained earnings 750,000 Total shareholders' equity $1.000.000 The following equity transactions occurred during 2024: Jan 31 May 14 July 1 July 15 August 7 Required: Issued 5,000 common shares for $12 each. Issued 100 preferred shares in exchange for equipment with a fair value of $90,000. Declared the regular cash dividend on preferred shares. Paid the regular cash dividend on preferred shares. Declared and issued a 20% stock dividend on common shares at a time when the market price was $13 per share. a.) Journalize the transactions above. b.) Assuming net income for the year was $125,000, prepare the statement of changes of shareholders' equity for the year ended December 31, 2024.

Equity transactions, Statement of Changes in Shareholders' Equity The December 31, 2023 shareholders' equity section of Bossman Inc.'s balance sheet is shown below: Preferred shares, $10 non-cumulative, 500 issued $50,000 Common shares, 20,000 issued 200,000 Retained earnings 750,000 Total shareholders' equity $1.000.000 The following equity transactions occurred during 2024: Jan 31 May 14 July 1 July 15 August 7 Required: Issued 5,000 common shares for $12 each. Issued 100 preferred shares in exchange for equipment with a fair value of $90,000. Declared the regular cash dividend on preferred shares. Paid the regular cash dividend on preferred shares. Declared and issued a 20% stock dividend on common shares at a time when the market price was $13 per share. a.) Journalize the transactions above. b.) Assuming net income for the year was $125,000, prepare the statement of changes of shareholders' equity for the year ended December 31, 2024.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 15E

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