P11.3B (LO 2, 3, 4) (Record and post equity transactions; prepare statements.) Ujjal Corporation, a publicly traded company, is authorized to issue an unlimited number of $5 noncumulative preferred shares and an unlimited number of common shares. On February 1, 2024, the general ledger contained the following shareholders' equity accounts: Preferred shares (4,400 shares issued) Common shares (70,000 shares issued) Contributed surplus $ 440,000 1,050,000 75,000 Retained earnings Accumulated other comprehensive income 1,000,000 65,000 The following equity transactions occurred during the year ended January 31, 2025: Feb. 28 Issued 1,500 preferred shares for $150,000. Apr. 11 May 25 Nov. 26 Issued 100,000 common shares for $3.5 million. Issued 2,500 common shares for $87,500. Dec. 31 Repurchased and retired 10,000 common shares for $24 each. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. Note that the balance in the Contributed Surplus account arose from the repurchase of common shares in prior years. Declared a $5.00 per share cash dividend to the preferred shareholders of record at January 15, payable February 1. Jan. 31 Incurred a net loss of $5,000 for the year. Instructions a. Record the above transactions for the year ended January 31, 2025, including any entries required to close dividends declared and net loss. b. Open T accounts and post to the shareholders' equity accounts. c. Prepare the statement of changes in equity for the year.
P11.3B (LO 2, 3, 4) (Record and post equity transactions; prepare statements.) Ujjal Corporation, a publicly traded company, is authorized to issue an unlimited number of $5 noncumulative preferred shares and an unlimited number of common shares. On February 1, 2024, the general ledger contained the following shareholders' equity accounts: Preferred shares (4,400 shares issued) Common shares (70,000 shares issued) Contributed surplus $ 440,000 1,050,000 75,000 Retained earnings Accumulated other comprehensive income 1,000,000 65,000 The following equity transactions occurred during the year ended January 31, 2025: Feb. 28 Issued 1,500 preferred shares for $150,000. Apr. 11 May 25 Nov. 26 Issued 100,000 common shares for $3.5 million. Issued 2,500 common shares for $87,500. Dec. 31 Repurchased and retired 10,000 common shares for $24 each. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. Note that the balance in the Contributed Surplus account arose from the repurchase of common shares in prior years. Declared a $5.00 per share cash dividend to the preferred shareholders of record at January 15, payable February 1. Jan. 31 Incurred a net loss of $5,000 for the year. Instructions a. Record the above transactions for the year ended January 31, 2025, including any entries required to close dividends declared and net loss. b. Open T accounts and post to the shareholders' equity accounts. c. Prepare the statement of changes in equity for the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:P11.3B (LO 2, 3, 4) (Record and post equity transactions; prepare statements.) Ujjal
Corporation, a publicly traded company, is authorized to issue an unlimited number of $5
noncumulative preferred shares and an unlimited number of common shares. On February 1,
2024, the general ledger contained the following shareholders' equity accounts:
Preferred shares (4,400 shares issued)
Common shares (70,000 shares issued)
Contributed surplus
$ 440,000
1,050,000
75,000
Retained earnings
Accumulated other comprehensive income
1,000,000
65,000
The following equity transactions occurred during the year ended January 31, 2025:
Feb. 28
Issued 1,500 preferred shares for $150,000.
Apr. 11
May 25
Nov. 26
Issued 100,000 common shares for $3.5 million.
Issued 2,500 common shares for $87,500.
Dec. 31
Repurchased and retired 10,000 common shares for $24 each. Determine the average cost of each
repurchased share to the nearest cent before recording this transaction. Note that the balance in
the Contributed Surplus account arose from the repurchase of common shares in prior years.
Declared a $5.00 per share cash dividend to the preferred shareholders of record at January 15,
payable February 1.
Jan. 31 Incurred a net loss of $5,000 for the year.
Instructions
a. Record the above transactions for the year ended January 31, 2025, including any
entries required to close dividends declared and net loss.
b. Open T accounts and post to the shareholders' equity accounts.
c. Prepare the statement of changes in equity for the year.
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