Pearl City Corporation, a publicly traded company, is authorized to issue 207,000 $4 noncumulative preferred shares and an unlimited number of common shares. On January 1, 2021, the general ledger contained the following shareholders' equity accounts: Preferred shares (8,500 shares issued) Common shares (68,600 shares issued) Contributed surplus Retained earnings Accumulated other comprehensive income 27 $467,500 1,097,600 Dec. 14 22,700 The following equity transactions occurred in 2021: 31 841,000 Feb. 6 Issued 9,900 preferred shares for $603,900. Issued 19,600 common shares for $578,200. Apr. 6 10,400 May 29 Declared a semi-annual cash dividend to the preferred shareholders of record at June 12, payable July 1. Issued 8,900 common shares in exchange for a building. At the time of the exchange, the building was valued at $173,300 and the common shares at $157,000. Aug 22 Repurchased and retired 2,900 common shares at $18 per share. The balance in the Contributed Surplus account arose from the repurchase of common shares in prior years. The board of directors decided there were insufficient funds to declare the semi-annual dividend to the preferred shareholders. Net income for the year was $539,000.
Pearl City Corporation, a publicly traded company, is authorized to issue 207,000 $4 noncumulative preferred shares and an unlimited number of common shares. On January 1, 2021, the general ledger contained the following shareholders' equity accounts: Preferred shares (8,500 shares issued) Common shares (68,600 shares issued) Contributed surplus Retained earnings Accumulated other comprehensive income 27 $467,500 1,097,600 Dec. 14 22,700 The following equity transactions occurred in 2021: 31 841,000 Feb. 6 Issued 9,900 preferred shares for $603,900. Issued 19,600 common shares for $578,200. Apr. 6 10,400 May 29 Declared a semi-annual cash dividend to the preferred shareholders of record at June 12, payable July 1. Issued 8,900 common shares in exchange for a building. At the time of the exchange, the building was valued at $173,300 and the common shares at $157,000. Aug 22 Repurchased and retired 2,900 common shares at $18 per share. The balance in the Contributed Surplus account arose from the repurchase of common shares in prior years. The board of directors decided there were insufficient funds to declare the semi-annual dividend to the preferred shareholders. Net income for the year was $539,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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do not give answer image formet
Transcribed Image Text:Pearl City Corporation, a publicly traded company, is authorized to issue 207,000 $4 noncumulative preferred shares and an unlimited
number of common shares. On January 1, 2021, the general ledger contained the following shareholders' equity accounts:
Preferred shares (8,500 shares issued)
Common shares (68,600 shares issued)
Contributed surplus
Retained earnings
Accumulated other comprehensive income
The following equity transactions occurred in 2021:
27
Feb. 6 Issued 9,900 preferred shares for $603,900.
Apr. 6
Issued 19,600 common shares for $578,200.
Repurchased and retired 2,900 common shares at $18 per share. The balance in the Contributed Surplus account
arose from the repurchase of common shares in prior years.
May 29
Aug 22
$467,500
1,097,600
22,700
841,000
Dec. 14
10,400
31
Declared a semi-annual cash dividend to the preferred shareholders of record at June 12, payable July 1.
Issued 8,900 common shares in exchange for a building. At the time of the exchange, the building was valued at
$173,300 and the common shares at $157,000.
The board of directors decided there were insufficient funds to declare the semi-annual dividend to the preferred
shareholders.
Net income for the year was $539,000.
Transcribed Image Text:Record the above tramactions, including any entries required to close dividends and net income (List off debit entries before credit
entries Credit account titles are automatically ledented when the amount is entered Do not indet manually no mtry is required, select
"No Entry for the account titles and enter 0 for the amounts Round verge cost per share to 2 decimal palces eg-2.25 and first onewers
to Odecimal places)
Date
Apt
Apr 27
May 29
June 12
AN1 V
Jug 22
Dec 14
Closing entries:
Date Account Titles and Explanation
Dec. 31
Account Titles and Explanation
Dec. 31
(To close net income foss))
Debit
Debit
Credit
Credit
00:00
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