On January 1, 20x1, Raven Ltd. had 40,000 shares of common shares issued and outstanding. The book value of those shares was$600,000. Furthermore, they had 10,000 $3, cumulative, preferred shares issued and outstanding which had a book value of $200,000.AccountDebitCreditThe following transactions took place in 20xl:Feb 28 - Issued 20,000 common shares for $500,000Jun 1 - Repurchased and cancelled 20,000 shares at $20.00 each.Jun 30 - A 2:1 stock split was announcedDec 15 - Declared a dividend of $2.00/share to shareholders of record on Dec 31.Required -Prepare all journal entries to record the above transactions. Round to two decimal points on any calculations.

1. Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders…

On January 1, 20x1, Raven Ltd. had 40,000 shares of common shares issued and outstanding. The book value of those shares was $600,000. Furthermore, they had 10,000 $3, cumulative, preferred shares issued and outstanding which had a book value of $200,000 Account Debit Credit The following transactions took place in 20x1: Feb 28 - Issued 20,000 common shares for $500,000 Jun 1 - Repurchased and cancelled 20,000 shares at $20.00 each. Jun 30 - A 2:1 stock split was announced Dec 15 - Declared a dividend of $2.00/share to shareholders of record on Dec 31. Required - Prepare all journal entries to record the above transactions. Round to two decimal points on any calculations.

On January 1, 20x1, Raven Ltd. had 40,000 shares of common shares issued and outstanding. The book value of those shares was $600,000. Furthermore, they had 10,000 $3, cumulative, preferred shares issued and outstanding which had a book value of $200,000 Account Debit Credit The following transactions took place in 20x1: Feb 28 - Issued 20,000 common shares for $500,000 Jun 1 - Repurchased and cancelled 20,000 shares at $20.00 each. Jun 30 - A 2:1 stock split was announced Dec 15 - Declared a dividend of $2.00/share to shareholders of record on Dec 31. Required - Prepare all journal entries to record the above transactions. Round to two decimal points on any calculations.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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