Rawhides Corporation showed the following account balances on December 31, 2022 balance sheet: Common shares, unlimited authorized shares, 660,000 shares issued and outstanding $3,980,000 Retained earnings $2,130,000 Per their incorporation documents, they are authorized to issue 100,000, $5 preferred shares. During 2023, the following selected transactions occurred: March 1 May 1 June 1 July 1 July 31 November 1 November 20 December 31 Repurchased and retired 100,500 common shares at $7.20 per share; this is the first retirement recorded by Rawhides Declared 2:1 shares split to shareholders of record on May 12, distributable May 30 The board of directors issued 15,000 preferred shares for $27 per share The board declared total cash dividends of $82,000 to shareholders of record on July 22 payable on July 31 Paid the cash dividend Declared a 10% share dividend to shareholders of record on November 10, distributable November 20. The market prices of the shares on November 1, November 10 and November 20 were $4.20, $3.96, and $4.10 respectively Distributed the share dividend November 1 The company's income statement had a balance of $1,350,000 Required 1. Journalize the transactions above (assuming the retirements were the first ever recorded by Rawhides Corporation) 2. Prepare the statement of changes on December 31 2023 3. Prepare the equity section on the December 31 2023 balance sheet (show your work)
Rawhides Corporation showed the following account balances on December 31, 2022 balance sheet: Common shares, unlimited authorized shares, 660,000 shares issued and outstanding $3,980,000 Retained earnings $2,130,000 Per their incorporation documents, they are authorized to issue 100,000, $5 preferred shares. During 2023, the following selected transactions occurred: March 1 May 1 June 1 July 1 July 31 November 1 November 20 December 31 Repurchased and retired 100,500 common shares at $7.20 per share; this is the first retirement recorded by Rawhides Declared 2:1 shares split to shareholders of record on May 12, distributable May 30 The board of directors issued 15,000 preferred shares for $27 per share The board declared total cash dividends of $82,000 to shareholders of record on July 22 payable on July 31 Paid the cash dividend Declared a 10% share dividend to shareholders of record on November 10, distributable November 20. The market prices of the shares on November 1, November 10 and November 20 were $4.20, $3.96, and $4.10 respectively Distributed the share dividend November 1 The company's income statement had a balance of $1,350,000 Required 1. Journalize the transactions above (assuming the retirements were the first ever recorded by Rawhides Corporation) 2. Prepare the statement of changes on December 31 2023 3. Prepare the equity section on the December 31 2023 balance sheet (show your work)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Rawhides Corporation showed the following account balances on December 31, 2022 balance sheet:
Common shares, unlimited authorized shares, 660,000 shares issued and outstanding $3,980,000
Retained earnings
$2,130,000
Per their incorporation documents, they are authorized to issue 100,000, $5 preferred shares.
During 2023, the following selected transactions occurred:
March 1
May 1
June 1
July 1
July 31
November 1
November 20
December 31
Repurchased and retired 100,500 common shares at $7.20 per share; this
is the first retirement recorded by Rawhides
Declared 2:1 shares split to shareholders of record on May 12,
distributable May 30
The board of directors issued 15,000 preferred shares for $27 per share
The board declared total cash dividends of $82,000 to shareholders of
record on July 22 payable on July 31
Paid the cash dividend
Declared a 10% share dividend to shareholders of record on November 10,
distributable November 20. The market prices of the shares on November
1, November 10 and November 20 were $4.20, $3.96, and $4.10
respectively
Distributed the share dividend November 1
The company's income statement had a balance of $1,350,000
Required
1. Journalize the transactions above (assuming the retirements were the first ever recorded by
Rawhides Corporation)
2. Prepare the statement of changes on December 31 2023
3. Prepare the equity section on the December 31 2023 balance sheet
(show your work)
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