Intermediate Accounting Corporation is a widely held, public company. Information about its shareholders equity is as follows: Intermediate Accounting Co. Shareholders' equity 31-Dec-19 Preferred shares, no par value, cumulative and participati 1,000 shares issued & outstanding 6,000 $ 100,000 180,000 6,000 8% Common shares, no par value, Contributed Surplus-common shares Contributed Surplus-Preferred shares Retained earnings Total shareholders equity 100,000 authorizec issued and outstanding 50,000 145,000 481,000 Instructions: The following transactions was the only transactions occurred during 2020 Prepare all the required journal entries to record the following transactions: A) (1) Jan 1, Issued (2) Feb 8, Issued (3) Mar 9, Repurchased and cancelled (4)Apr 10, Issued (5)May 2, Repurchased and cancelled 3,000 shares at $40 cash per common shar 1,000 8% cumulative and participating preferred shares at $50 cash per share. 200 shares at $20 per common share. common share. $50 1,000 shares at $45 2,000 shares at per common share. August 8, 2020 Board of Directors declared and paid cash dividends in the amount of $ determine how much each class of shares should receive dividend. Note that there is one year's dividend in arrears. 50,000 B) Prepare the journal entry to record this payment (Assume the dividend declared and paid on the same day) C) Show the proper B/S (SFP) presentation for the shareholders equity at dec 31 2020 Notes: To proceed, you first need to preapre all the journal entries.
Intermediate Accounting Corporation is a widely held, public company. Information about its shareholders equity is as follows: Intermediate Accounting Co. Shareholders' equity 31-Dec-19 Preferred shares, no par value, cumulative and participati 1,000 shares issued & outstanding 6,000 $ 100,000 180,000 6,000 8% Common shares, no par value, Contributed Surplus-common shares Contributed Surplus-Preferred shares Retained earnings Total shareholders equity 100,000 authorizec issued and outstanding 50,000 145,000 481,000 Instructions: The following transactions was the only transactions occurred during 2020 Prepare all the required journal entries to record the following transactions: A) (1) Jan 1, Issued (2) Feb 8, Issued (3) Mar 9, Repurchased and cancelled (4)Apr 10, Issued (5)May 2, Repurchased and cancelled 3,000 shares at $40 cash per common shar 1,000 8% cumulative and participating preferred shares at $50 cash per share. 200 shares at $20 per common share. common share. $50 1,000 shares at $45 2,000 shares at per common share. August 8, 2020 Board of Directors declared and paid cash dividends in the amount of $ determine how much each class of shares should receive dividend. Note that there is one year's dividend in arrears. 50,000 B) Prepare the journal entry to record this payment (Assume the dividend declared and paid on the same day) C) Show the proper B/S (SFP) presentation for the shareholders equity at dec 31 2020 Notes: To proceed, you first need to preapre all the journal entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Intermediate Accounting Corporation is a widely held, public company. Information about its shareholders equity is as follows:
Intermediate Accounting Co.
Shareholders' equity
31-Dec-19
$ 100,000
Preferred shares, no par value, cumulative and participati 1,000 shares issued & outstanding
6,000
8%
Common shares, no par value.
Contributed Surplus-common shares
Contributed Surplus-Preferred shares
Retained earnings
Total shareholders equity
180,000
6,000
50,000
100,000 authorizec
issued and outstanding
145,000
481,000
Instructions:
The following transactions was the only transactions occurred during 2020
Prepare all the required journal entries to record the following transactions:
A)
(1) Jan 1, Issued
3,000
shares at
$40
cash per common shar
$50
cash per share.
(2) Feb 8, Issued
(3) Mar 9, Rep
(4)Apr 10, Issued
(5)May 2, Repurchased and cancelled
1,000 8% cumulative and participating preferred shares at
sed and cancelled
200
shares at
$20
per common share.
common share.
$50
1,000
shares at
$45
2,000
shares at
per common share.
August 8, 2020 Board of Directors declared and paid cash dividends in the amount of $ 50,000
determine how much each class of shares should receive dividend. Note that there is one year's dividend in arrears.
B)
Prepare the journal entry to record this payment (Assume the dividend declared and paid on the same day)
C)
Show the proper B/S (SFP) presentation for the shareholders equity at dec 31 2020
Notes:
To proceed, you first need to preapre all the journal entries.
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