In 2023, the company had the following transactions affecting shareholders and the shareholders' equity accounts: Jan. 1 Purchased and retired 2,100 common shares at $36 per share. 14 The directors declared an 8% share dividend distributable on February 5 to the January 30 shareholders of record. The shares were trading at $45.70 per share. 30 Date of record regarding the 8% share dividend. Feb. 5 Date of distribution regarding the 8% share dividend. July 6 Sold 5,100 preferred shares at $61 per share. Sept. 5 The directors declared a total cash dividend of $48,000 payable on October 5 to the September 20 shareholders of record. Oct. 5 The cash dividend declared on September 5 was paid. Dec. 31 Closed the $466,600 credit balance in the Profit Summary account to Retained Earnings. 31 Closed the dividend accounts. Required 1. Prepare journal entries to record the transactions and closings for 2023 (assume the retirements were the first ever recorded by Zen Aerospace). Assume share dividends and cash dividends account is used when dividends are declared. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Activate
In 2023, the company had the following transactions affecting shareholders and the shareholders' equity accounts: Jan. 1 Purchased and retired 2,100 common shares at $36 per share. 14 The directors declared an 8% share dividend distributable on February 5 to the January 30 shareholders of record. The shares were trading at $45.70 per share. 30 Date of record regarding the 8% share dividend. Feb. 5 Date of distribution regarding the 8% share dividend. July 6 Sold 5,100 preferred shares at $61 per share. Sept. 5 The directors declared a total cash dividend of $48,000 payable on October 5 to the September 20 shareholders of record. Oct. 5 The cash dividend declared on September 5 was paid. Dec. 31 Closed the $466,600 credit balance in the Profit Summary account to Retained Earnings. 31 Closed the dividend accounts. Required 1. Prepare journal entries to record the transactions and closings for 2023 (assume the retirements were the first ever recorded by Zen Aerospace). Assume share dividends and cash dividends account is used when dividends are declared. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Activate
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format ? And Fast Answering Please ? And Explain Proper Step by Step.
Transcribed Image Text:Zen Aerospace Corporation reported the following equity account balances on December 31, 2022:
Preferred shares, $3.60 cumulative, unlimited shares authorized
Common shares, unlimited shares authorized, 20,500 shares issued
and outstanding
Retained earnings
$
0
565,800
325,000
In 2023, the company had the following transactions affecting shareholders and the shareholders' equity accounts:
Jan. 1 Purchased and
retired 2,100 common shares at $36 per share.
14 The directors declared an 8% share dividend distributable
Prev
February 5 to the January 30 shareholders of record. The
shares were trading at $45.70 per share.
30 Date of record regarding the 8% share dividend.
Feb.
5 Date of distribution regarding the 8% share dividend.
July
6 Sold 5,100 preferred shares at $61 per share.
Sept. 5 The directors declared a total cash dividend of $48,000 payable on October 5 to the September 20 shareholders of record.
Oct. 5 The cash dividend declared on September 5 was paid.
Dec. 31 Closed the $466,600 credit balance in the Profit Summary account to Retained Earnings.
31 Closed the dividend accounts.
Required
1. Prepare journal entries to record the transactions and closings for 2023 (assume the retirements were the first ever recorded by Zen
Aerospace). Assume share dividends and cash dividends account is used when dividends are declared. (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
1 of 3
Next >
Activate
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education