Prepare the journal entries to record the above transactions. Round any per share data to three decimals.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The shareholders' equity section of Casey Inc. as at December 31, 20x0 is as follows:
Preferred Shares – Series A, $4, cumulative and fully participating,
25,000 shares outstanding
Preferred Shares, Series B, 6%, noncumulative and non participating
Common Shares, 600,000 shares outstanding
Contributed Surplus, common share repurchases
Retained earnings
$2,500,000
1,400,000
11,200,000
422,000
5,800,000
The following transactions occurred during the year ended December 31, 20x1:
Jan 2
Issued an additional 15,000 Preferred Shares – Series A for s1,500,000.
Mar 1
Issued 200,000 common shares for total proceeds of $5,000,000
Incurred underwiter and legal fees related to the common share issue of
March 1 of $325,000
Mar 8
April 15
Purchased land in exchange for 20,000 common shares. The fair value
of the land was $375,000. The common shares were trading for $18.20
per share on April 15.
May 15
Declared a 3:1 stock split. The effect of the split was to drop the fair
value per share from $18 to $9.
Aug 31
Repurchased 130,000 common shares at $11.00
The net income for the year was $1,960,000 and a dividend of
$1,300,000 was declared (show the breakdown of the dividends between
all three types of shares, i.e. one dividend payable account for each class
of shares)
Dec 31
Required -
Prepare the journal entries to record the above transactions. Round any per share data to
three decimals.
Transcribed Image Text:Need the Answer SOON! Thank you for the help The shareholders' equity section of Casey Inc. as at December 31, 20x0 is as follows: Preferred Shares – Series A, $4, cumulative and fully participating, 25,000 shares outstanding Preferred Shares, Series B, 6%, noncumulative and non participating Common Shares, 600,000 shares outstanding Contributed Surplus, common share repurchases Retained earnings $2,500,000 1,400,000 11,200,000 422,000 5,800,000 The following transactions occurred during the year ended December 31, 20x1: Jan 2 Issued an additional 15,000 Preferred Shares – Series A for s1,500,000. Mar 1 Issued 200,000 common shares for total proceeds of $5,000,000 Incurred underwiter and legal fees related to the common share issue of March 1 of $325,000 Mar 8 April 15 Purchased land in exchange for 20,000 common shares. The fair value of the land was $375,000. The common shares were trading for $18.20 per share on April 15. May 15 Declared a 3:1 stock split. The effect of the split was to drop the fair value per share from $18 to $9. Aug 31 Repurchased 130,000 common shares at $11.00 The net income for the year was $1,960,000 and a dividend of $1,300,000 was declared (show the breakdown of the dividends between all three types of shares, i.e. one dividend payable account for each class of shares) Dec 31 Required - Prepare the journal entries to record the above transactions. Round any per share data to three decimals.
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