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 Retained earnings Accumulated other comprehensive income $ 440,000 1,050,000 75,000 1,000,000 65,000 The following equity transactions occurred during the year ended January 31, 2025: Feb. 28 Apr. 11 Issued 1,500 preferred shares for $150,000. Issued 100,000 common shares for $3.5 million. May 25 Nov. 26 Dec. 31 Jan. 31 Issued 2,500 common shares for $87,500. 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. 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 Retained earnings Accumulated other comprehensive income $ 440,000 1,050,000 75,000 1,000,000 65,000 The following equity transactions occurred during the year ended January 31, 2025: Feb. 28 Apr. 11 Issued 1,500 preferred shares for $150,000. Issued 100,000 common shares for $3.5 million. May 25 Nov. 26 Dec. 31 Jan. 31 Issued 2,500 common shares for $87,500. 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. 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
Related questions
Question
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
Retained earnings
Accumulated other comprehensive income
$ 440,000
1,050,000
75,000
1,000,000
65,000
The following equity transactions occurred during the year ended January 31, 2025:
Feb. 28
Apr. 11
Issued 1,500 preferred shares for $150,000.
Issued 100,000 common shares for $3.5 million.
May 25
Nov. 26
Dec. 31
Jan. 31
Issued 2,500 common shares for $87,500.
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.
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education