Do not give solution in image Major Communications Ltd., a publicly traded company that specializes in data capture, has been in operation for several years. OnOctober 1, 2019, it had 10 million common shares authorized and 1,350,000 shares issued at an average value of $31 per share. Aswell, there were 1 million preferred shares authorized, with 220,000 of them issued at $15 per share. During the fiscal year endedSeptember 30, 2020, the company generated net income after taxes of $26,830,000 and other comprehensive loss of $4,780,000. OnOctober 1, 2019, the balance in Retained Earnings was $21.250,000 and the balance in Accumulated Other Comprehensive Incomewas $920,000. The preferred shares pay an annual dividend of $1.20. During the fiscal year 2020, the following transactions affectedshareholders' equity:1.2.On November 1, 2019, 400,000 new common shares were issued at $33 per share.On March 15, 2020, a 5% common stock dividend on the outstanding shares was declared and distributed when the marketprice was $42 per share.3. On September 1, 2020, a dividend of $5.20 per common share was declared. The date of record was September 15, 2020,with the date of payment being October 5, 2020.The preferred dividend for the year was declared and paid.4. Prepare the shareholders' equity section of the statement of financial position as at September 30, 2020. (Enter negative answersusing either a negative sign preceding the number e.g. -5,125 or parentheses e.g. (5,125).)Major Communications Ltd.Shareholders' EquitySeptember 30, 2020

Equity held by stockholders refers to the sum that a corporation's owners have contributed to the…

Answered: Prepare the shareholders' equity…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

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Problem 24E

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Major Communications Ltd., a publicly traded company that specializes in data capture, has been in operation for several years. On October 1, 2019, it had 10 million common shares authorized and 1,400,000 shares issued at an average value of $29 per share. As well, there were 1 million preferred shares authorized, with 220,000 of them issued at $16 per share. During the fiscal year ended September 30, 2020, the company generated net income after taxes of $22,620,000 and other comprehensive loss of $5,150,000. On October 1, 2019, the balance in Retained Earnings was $18,600,000 and the balance in Accumulated Other Comprehensive Income was $910,000. The preferred shares pay an annual dividend of $1.10. During the fiscal year 2020, the following transactions affected shareholders’ equity: 1. On November 1, 2019, 400,000 new common shares were issued at $31 per share. 2. On March 15, 2020, a 5% common stock dividend on the outstanding shares was declared and distributed when…
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Prepare the shareholders' equity section of the statement of financial position as at September 30, 2020. (Enter negative answers using either a negative sign preceding the number e.g. -5,125 or parentheses e.g. (5,125).) Major Communications Ltd. Shareholders' Equity September 30, 2020