Flint's Dance Studios Ltd. is a public company, and accordingly uses IFRS for financial reporting. Thecorporate charter authorizes the issuance of an unlimited number of common shares and 70,000 preferredshares with a $2 dividend. At the beginning of the December 31, 2020 year, the opening account balancesindicated that 30,000 common shares had been issued for $5 per share, and no preferred shares had beenissued. Opening retained earnings were $311,000. The transactions during the year were as follows:Jan. 15 Issued 12,000 common shares at $6 per share.Feb. 12 Issued 2,300 preferred shares at $56 per share.Sept. 2 Issued 5,000 common shares in exchange for land valued at $30,000.Oct. 31 Declared and paid a dividend on preferred shares of $2 per share.Nov. 1 Declared and paid a dividend on common shares of $1.20 per share.Nov. 15 Purchased and retired 500 preferred shares at $58 per share.Dec. 31 After preliminary closing entries, the Income Summary account had a credit balance of $224,000.a. Prepare journal entries to record the transactions above.b. Prepare the statement of changes in shareholders' equity.c. Prepare the closing entries for the income summary and dividends at December 31, 2020.

Shareholder's Equity consists of both total paid in capital and retained earnings. All the class of…

Answered: Flint's Dance Studios Ltd. is a public…

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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Jackson Inc. is authorized to issue an unlimited number of common shares and 15,000, $58 stated value preferred shares, with 9% cumulative dividends. On Jan 1, 2020, Jackson Inc. issued 1000 common shares for $40 per share, and 300 preferred shares for $70 per share. a) How much cash did Jackson Inc. raise on the issuance of the common shares? b) How much cash did Jackson Inc. raise on the issuance of the preferred shares? c) Assuming retained earnings is $120,000 at December 31, 2020. What is the total amount of shareholders’ equity to be reflected in the December 31, 2020 statement of financial position of Jackson Inc?
Hammond Manufacturing Inc. was legally incorporated on January 2, 2023. Its articles of incorporation granted it the right to issue an unlimited number of common shares and 100,000 shares of $14.40 non-cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations: 2023 Jan. Mar. Dec. 12 Issued 40,000 common shares at $4.80 each. 20 Issued 6,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $36,000. 31 Issued 80,000 common shares in exchange for land, building, and equipment, which have fair market values of $360,000, $480,000, and $48,000, respectively. 4 Purchased equipment at a cost of $8,160 cash. This was thought to be a special bargain price. It was felt that at least $10,800 would normally have had to be paid to acquire this equipment. 31 During 2023, the company incurred a loss of $96,000. The Income Summary account was closed. 2024…
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Halpern Corporation is authorized to issue 1,000,000 shares of $3 par value common stock. During 2021, its first year of operation, the company has the following stock transactions. Jan. 1. Paid the state $5,000 for incorporation fees Jan. 15 Issued 500,000 shares of stock at $6 per share. Jan. 30 Attorneys for the company accepted 500 shares of common stock as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value of $7,000. July 2. Issued 100,000 shares of stock for land. The land had an asking price of $900,000. The stock is currently selling on a national exchange at $8 per share. Sept. 5 Purchased 15,000 shares of common stock for the treasury at $8 per share. Dec. 6. Sold 11,000 shares of the treasury stock at $11 per share. Journalize the transactions for Halpern Corporation. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount…
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