a) Prepare all the journal entries for the stated transactions b) Assume that the income for the year is $13,500,000. Prepare a statement of changes in shareholders' equityc) Prepare the shareholders' equity section of the balance sheet at the end of the year Junk 'R Us (JRU) recently went public as of January 1, 2020. At the time it issued 2,000,000 common shares worth$50,000,000 along with 250,000, 5% preferred shares for a total of $7,000,000. By the end of the year (December31, 2020), JRU showed the equity section of its balance sheet that it had retained earnings of $9,500,000.The following transactions occurred during the year 2021:• Issued and additional 950,000 common shares raising another $26,000,000• Repurchased and cancelled 225,000 shares at $22 per share• Issued 6,500 common shares in exchange for new truck worth $95,000• Issued another 425,000 common shares raising an additional $15,000,000• Stock split 2 to 1• Repurchased 45,000 at $34 per share• Declare a $0.90 common share dividend and dividend on the preferred shares• Paid the dividends at year end

1. Shareholder's Equity - Shareholder's Equity Section is the amount owner's owned. This sections…

Answered: Junk 'R Us (JRU) recently went public…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

a) Prepare all the journal entries for the stated transactions

b) Assume that the income for the year is $13,500,000. Prepare a statement of changes in shareholders' equity

c) Prepare the shareholders' equity section of the balance sheet at the end of the year

Junk 'R Us (JRU) recently went public as of January 1, 2020. At the time it issued 2,000,000 common shares worth
$50,000,000 along with 250,000, 5% preferred shares for a total of $7,000,000. By the end of the year (December
31, 2020), JRU showed the equity section of its balance sheet that it had retained earnings of $9,500,000.
The following transactions occurred during the year 2021:
• Issued and additional 950,000 common shares raising another $26,000,000
• Repurchased and cancelled 225,000 shares at $22 per share
• Issued 6,500 common shares in exchange for new truck worth $95,000
• Issued another 425,000 common shares raising an additional $15,000,000
• Stock split 2 to 1
• Repurchased 45,000 at $34 per share
• Declare a $0.90 common share dividend and dividend on the preferred shares
• Paid the dividends at year end

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions