On January 1, 2023, Cullumber Ltd. (a public company had the following shareholders equity accounts: Preferred shares 56 non-cumulative unlimited number authorized none issued Common shares, unlimited number authorized 800,000 issued Retained earnings Accumulated other comprehensive income The following selected transactions occurred during 2023: Mar. S 5 Sept 5 Dec. 5 Dec 31 (a) 0 $7.200.000 1.530.000 144,000 Issued 120.000 preferred shares at $80 per share Declared the quarterly cash dividend to preferred shareholders of record on March 20, payable April 1 Issued 100.000 common shares at $9 per share Declared the quarterly cash dividend to preferred shareholders of record on June 20, payable July 1 Declared the quarterly cash dividend to preferred shareholders of record on September 20, payable October 1 Declared the quarterly cash dividend to preferred shareholders of record on December 20, payable January 1 Net Income for the year was $410,000 Prepare journal entries to record the transactions above, as well as the closing entries for Income Summary and Dividends List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually no entry is required, select "No Entry for the account titles and enter O for the amounts Record journal entries in the order presented in the problem)
On January 1, 2023, Cullumber Ltd. (a public company had the following shareholders equity accounts: Preferred shares 56 non-cumulative unlimited number authorized none issued Common shares, unlimited number authorized 800,000 issued Retained earnings Accumulated other comprehensive income The following selected transactions occurred during 2023: Mar. S 5 Sept 5 Dec. 5 Dec 31 (a) 0 $7.200.000 1.530.000 144,000 Issued 120.000 preferred shares at $80 per share Declared the quarterly cash dividend to preferred shareholders of record on March 20, payable April 1 Issued 100.000 common shares at $9 per share Declared the quarterly cash dividend to preferred shareholders of record on June 20, payable July 1 Declared the quarterly cash dividend to preferred shareholders of record on September 20, payable October 1 Declared the quarterly cash dividend to preferred shareholders of record on December 20, payable January 1 Net Income for the year was $410,000 Prepare journal entries to record the transactions above, as well as the closing entries for Income Summary and Dividends List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually no entry is required, select "No Entry for the account titles and enter O for the amounts Record journal entries in the order presented in the problem)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2023, Cullumber Ltd. (a public company) had the following shareholders' equity accounts:
Preferred shares, $6 non-cumulative, unlimited number authorized, none issued
Common shares, unlimited number authorized, 800,000 issued
Retained earnings
Accumulated other comprehensive income
The following selected transactions occurred during 2023
Jan. 2
0
(a)
$7,200,000
1,530,000
144,000
Issued 120,000 preferred shares at $80 per share.
Declared the quarterly cash dividend to preferred shareholders of record on March 20, payable Aprill 1.
Issued 100,000 common shares at $9 per share.
Declared the quarterly cash dividend to preferred shareholders of record on June 20, payable July 1.
Declared the quarterly cash dividend to preferred shareholders of record on September 20, payable October 1.
Mar. 5
Apr. 18
June 5
Sept 5
Dec. 5
Declared the quarterly cash dividend to preferred shareholders of record on December 20, payable January 1.
Dec. 31 Net income for the year was $410,000.
Prepare journal entries to record the transactions above, as well as the closing entries for Income Summary and Dividends. (List all
debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If
no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the
problem.)
Date
v
Account Titles and Explanation
(To close income summary account)
(To close dividends account)
Debit
Credit
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