Queenstown Corporation issues 4,000, $4 cumulative preferred shares at $80 each and 12,000common shares at $18 at the beginning of 2022. Each preferred share is convertible into fourcommon shares. During the years 2022 and 2023, the following transactions affectedQueenstown Corporation's shareholders' equity accounts:2022Dec. 10 Declared and paid $12,000 of annual dividends to preferred shareholders.2023Dec. 10Dec. 21Required:a)b)Declared and paid the annual dividend to preferred shareholders and a $4,000dividend to common shareholders.The preferred shares were converted into common shares.Journalize each of the 2022 and 2023 transactions.After the preferred shares are converted, what is the total number of common sharesissued?

Shares Shares are regarded as one of the most commonly security acquired by the company. It…

Answered: Queenstown Corporation issues 4,000, $4…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ANSWERED Sunday, May 29, 2022 BUSINESS ACCOUNTING Journalize the following transaction: Mining corporation is authorized to issue 50,000 shares of $500 par value 7% preferred stock. It's also authorized to issue 5,000,000 shares of $3 par value common stock. In its first year, the corporation has the following transaction: 1-May issued 3,000 shares of preferred stock for Cash at $750 per share. 23-May issued 6,000 shares of common stock at $12.50 Per share. Jun.10 issued 5,000 shares of common stock for equipment without a readily determinable value. The stock is currently trading at $11 per share. Journalize the transactions √x 8
Skysong Company's ledger shows the following balances on December 31, 2025. 6% Preferred stock-$10 par value, outstanding 20,100 shares Common stock-$100 par value, outstanding 30,300 shares Retained earnings Assuming that the directors decide to declare total dividends in the amount of $362,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock. a. The preferred stock is cumulative and fully participating. (Round the rate of participation to 6 decimal places, eg0.014278. Round answers to O decimal places, e.g. 38,487.) Preferred Preferred 158,870 Preferred b. The preferred stock is noncumulative and nonparticipatine. (Round answers to 0 decimal places, eg. 38,487.) 12060 Common 76712 Common 203130 $201.000 3,030,000 664,000 c. The preferred stock is noncumulative and is participating in distributions in excess of a 8% dividend rate on the common stock. (Round the rate of…
The Board of Directors of GHI Corporation declared an annual dividend of P5 per share on 50,000 shares of P10 par value ordinary shares issued and outstanding at their meeting on December 10, 2020. This is payable on March 31,2021 to shareholders of record on December 31,2020.5. Which of the following is the correct entry to be made on March 31, 2021. * O Debit Dividends Payable P250,000 and Credit Cash P250,000 O Debit Dividends Payable P500,000 and Credit Retained Earnings P500,000 Debit Retained Earnings P250,000 and Credit Dividends Payable P250,000 No entry should be made because the books have already been updated on December 31, 2020
Buffalo Ltd. issues 8,700, $5 cumulative preferred shares at $62 each and 15,000 common shares at $30 each at the beginning of 2019. Each preferred share is convertible into two common shares. The appropriate preferred share dividend was declared and paid in 2019. During the years 2020 and 2021, the following transactions affected Buffalo's shareholders' equity accounts: 2020 Jan. 10 Paid $11,000 of annual dividends to preferred shareholders. 2021 Jan. 10 Paid annual dividend to preferred shareholders and a $3,400 dividend to common shareholders. Mar. 1 The preferred shares were converted into common shares. Journalize each of the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2020Jan . 10 (To record preferred…
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IFA Corporations had Net Income of $780,000 and the following information for January 2021 to December 2021.Ordinary shares issued and outstanding:Jan 1 500,000 sharesMarch 1 300,000 shares.June 1 A 10% share dividendAugust 1 120,000 shares.October 1 700,000 shares.December 1 A 2 for 1 share splitOn January 1, 10% convertible debentures, $60,000,000 face value, were issued at par. Each $1,000 debenture is convertible into 40 ordinary shares. The interest expense for the current year related to the liability component of the convertible debentures is $6,500,000.250,000 preference shares outstanding, $60 par, 10% cumulative, not convertible.Options were granted to purchase 400,000 ordinary shares at $18 each. The company’s average market price of ordinary shares was $24.10-year $3,000,000 face value, 8% bonds issued at par on May 1. Each $500 bond is convertible into 30 ordinary shares. The interest expense on the liability component of convertible bonds for the year was $360,000The tax…
The Board of Directors of GHI Corporation declared an annual dividend of P5 per share on 50,000 shares of P10 par value ordinary shares issued and outstanding at their meeting on December 10, 2020. This is payable on March 31,2021 to shareholders of record on December 31,2020.The correct entry to record to be made on December 10,2020 :* Debit Dividends Payable P500,000 and Credit Cash P500,000 No entry should be made O Debit Retained Earnings P250,000 and Credit Dividends Payable P250,000 O Debit Dividends Payable P250,000 and Credit Cash P250,000
Crane Ltd. began operations on January 2, 2024. During the year, the following transactions affected shareholders' equity: 1. Crane's articles of incorporation authorize the issuance of 2.5 million common shares and the issuance of 253,000 preferred shares, the latter of which pay an annual dividend of $3.0 per share. 2. A total of 303,000 common shares were issued for $6 a share, 3. A total of 35,000 preferred shares were issued for $10 per share. 4. The full annual dividend on the preferred shares was declared. 5. The dividend on the preferred shares was paid. 6. A dividend of $0.12 per share was declared on the common shares but was not yet paid. 7. The company had net income of $170,000 for the year. (Assume sales of $500,000 and total operating expenses of $330,000.) 8. The dividends on the common shares were paid. 9. The closing entry for the Dividends Declared account was prepared.
The following data were taken from the statement of financial position accounts of Cha-Cha Corporation on Dec 31, 2019. Current Assets $ 270,000 Investments $ 312,000 Share Capital - Ordinary (par Value $10) $ 300,000 Share Premium - Ordinary $ 75,000 Retained Earnings $ 420,000 Prepare the required Journal Entries for the following unrelated items! 1. A 5% share dividend is declared and distributed at a time when the market price of the shares is $39 per share. 2. The par value of the ordinary shares is reduced to $2 with a 5-for-1 share split. 3. A dividend is declared January 10, 2020 and paid January 28, 2020, in bonds held as an investment. The bonds have a book value of $ 0f $45,000 and a fair value $ 62,500.
The shareholders' equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 240 million shares at $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings ($ in millions) $ 240 1,680 1 1,100 Required: 1. During 2021, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. On Feb ary 5, 2021, TNL Systems purchased 6 million shares at $10 per share. On July 9, 2021, the corporation sold 2 million shares at $12 per share. On November 14, 2023, the corporation sold 2 million shares at $7 per share. 2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2023, comparing the two approaches. Assume all net income earned in 2021-2023 was distributed to…
Required:A. Journalize the foregoing transactions. B. Prepare the share capital section of the stockholders’ equity as of December 31, 2018.
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