Major Communications Ltd., a publicly traded company that specializes in data capture, has been in operation for several years. On October 1, 2019, it had 10 million common shares authorized and 1,530,000 shares issued at an average value of $29 per share. As well, there were 1 million preferred shares authorized, with 180,000 of them issued at $15 per share. During the fiscal year ended September 30, 2020, the company generated net income after taxes of $23,620,000 and other comprehensive loss of $5,290,000. On October 1, 2019, the balance in Retained Earnings was $21,710,000 and the balance in Accumulated Other Comprehensive Income was $1,090,000. The preferred shares pay an annual dividend of $1.20. During the fiscal year 2020, the following transactions affected shareholders' equity: On November 1, 2019, 390,000 new common shares were issued at $31 per share. On March 15, 2020, a 5% common stock dividend on the outstanding shares was declared and distributed when the market price was $49 per share. 1. 2. 3. On September 1, 2020, a dividend of $5.15 per common share was declared. The date of record was September 15, 2020, with the date of payment being October 5, 2020. The preferred dividend for the year was declared and paid. Prepare the statement of changes in shareholders' equity as at September 30, 2020. (If an amount reduces the account balance then enter with negative sign, e.g. -15,000 or in parenthesis, e.g. (15,000).) Prepare the shareholders' equity section of the statement of financial position as at September 30, 2020. (Enter negative answers using either a negative sign preceding the number e.g. -5,125 or parentheses e.g. (5,125).) Major Communications Ltd. Shareholders' Equity September 30, 2020
Major Communications Ltd., a publicly traded company that specializes in data capture, has been in operation for several years. On October 1, 2019, it had 10 million common shares authorized and 1,530,000 shares issued at an average value of $29 per share. As well, there were 1 million preferred shares authorized, with 180,000 of them issued at $15 per share. During the fiscal year ended September 30, 2020, the company generated net income after taxes of $23,620,000 and other comprehensive loss of $5,290,000. On October 1, 2019, the balance in Retained Earnings was $21,710,000 and the balance in Accumulated Other Comprehensive Income was $1,090,000. The preferred shares pay an annual dividend of $1.20. During the fiscal year 2020, the following transactions affected shareholders' equity: On November 1, 2019, 390,000 new common shares were issued at $31 per share. On March 15, 2020, a 5% common stock dividend on the outstanding shares was declared and distributed when the market price was $49 per share. 1. 2. 3. On September 1, 2020, a dividend of $5.15 per common share was declared. The date of record was September 15, 2020, with the date of payment being October 5, 2020. The preferred dividend for the year was declared and paid. Prepare the statement of changes in shareholders' equity as at September 30, 2020. (If an amount reduces the account balance then enter with negative sign, e.g. -15,000 or in parenthesis, e.g. (15,000).) Prepare the shareholders' equity section of the statement of financial position as at September 30, 2020. (Enter negative answers using either a negative sign preceding the number e.g. -5,125 or parentheses e.g. (5,125).) Major Communications Ltd. Shareholders' Equity September 30, 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Major Communications Ltd., a publicly traded company that specializes in data capture, has been in operation for
several years. On October 1, 2019, it had 10 million common shares authorized and 1,530,000 shares issued at an
average value of $29 per share. As well, there were 1 million preferred shares authorized, with 180,000 of them
issued at $15 per share. During the fiscal year ended September 30, 2020, the company generated net income
after taxes of $23,620,000 and other comprehensive loss of $5,290,000. On October 1, 2019, the balance in
Retained Earnings was $21,710,000 and the balance in Accumulated Other Comprehensive Income was
$1,090,000. The preferred shares pay an annual dividend of $1.20. During the fiscal year 2020, the following
transactions affected shareholders' equity:
1.
2.
3.
On November 1, 2019, 390,000 new common shares were issued at $31 per share.
On March 15, 2020, a 5% common stock dividend on the outstanding shares was declared and
distributed when the market price was $49 per share.
On September 1, 2020, a dividend of $5.15 per common share was declared. The date of record was
September 15, 2020, with the date of payment being October 5, 2020.
The preferred dividend for the year was declared and paid.
Prepare the statement of changes in shareholders' equity as at September 30, 2020. (If an amount reduces the account balance
then enter with negative sign, e.g. -15,000 or in parenthesis, e.g. (15,000).)
Prepare the shareholders' equity section of the statement of financial position as at September 30, 2020. (Enter negative answers
using either a negative sign preceding the number e.g. -5,125 or parentheses e.g. (5,125).)
Major Communications Ltd.
Shareholders' Equity
September 30, 2020
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