Question2Instructo Inc. showed the following shareholders' equity account balances at December 31, 2019:Common shares, unlimited authorized shares,480,000 shares issued and outstandingRetained earnings$6,800,0003,600,000During 2020, the following selected transactions occurred:Repurchased and retired 200,000 common shares at $9.20 per shareRepurchased and retired 125,000 common shares at $10.75 per shareIssued 50,000 common shares at $12 per shareRepurchased and retired 100,000 common shares at $20.00 per shareDeclared a 10% share dividend to shareholders of record on December 10,distributable December 20. The market prices of the shares on December 1,December 10, and December 20 were $7.50, $6.80, and $7.20 respectively.Apr.June1AugNov.Dec.20Distributed the share dividend declared December 1.31Closed the credit balance of $1,620,000 in the Income Summary account.Required:a.Journalize the transactions above.b.Prepare the shareholders' equity section at December 31, 2020.

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Question2 Instructo Inc. showed the following shareholders' equity account balances at December 31, 2019 Common shares, unlimited authorized shares, 480,000 shares issued and outstanding Retained earnings $6,800,000 3,600,000 During 2020, the following selected transactions occurred: Repurchased and retired 200,000 common shares at $9.20 per share Repurchased and retired 125,000 common shares at $10.75 per share Issued 50,000 common shares at $12 per share Apr. 1 June 1 Aug

Question2 Instructo Inc. showed the following shareholders' equity account balances at December 31, 2019 Common shares, unlimited authorized shares, 480,000 shares issued and outstanding Retained earnings $6,800,000 3,600,000 During 2020, the following selected transactions occurred: Repurchased and retired 200,000 common shares at $9.20 per share Repurchased and retired 125,000 common shares at $10.75 per share Issued 50,000 common shares at $12 per share Apr. 1 June 1 Aug

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 81PSA

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Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.
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