Sunland Corporation, a publicly traded company, was incorporated on May 1, 2024. It is authorized to issue an unlimited number of $2 noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the company's first year of operations: May 5 Issued 750,000 common shares for $4 per share. July 1 Issued 35,800 preferred shares for $40 per share. Sept. 1 Issued 44,000 common shares for $264,000. Oct. 1 Nov. 16 Jan. 5 Mar. Issued 249,000 common shares for $5 per share. Repurchased and retired 26,000 common shares at $4 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction Issued 14,400 common shares for $7 per share. 1 Repurchased and retired 9,400 common shares at $6 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. 25 Apr. 15 30 Issued 6,200 preferred shares for $60 per share. Declared a $84,000 cash dividend to the preferred shareholders, to shareholders of record on April 30, payable on May 15. Reported net income of $6 million for the year. (a) Record the above transactions for 2024, including any required entries to close dividends declared and net income. (Record journal entries in the order presented in the problem. List all debit entries before credit entries. 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 O for the amounts. Round average cost per share to 2 decimal places, e.g. 2.25 and final answers to O decimal places.) Transaction entries:
Sunland Corporation, a publicly traded company, was incorporated on May 1, 2024. It is authorized to issue an unlimited number of $2 noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the company's first year of operations: May 5 Issued 750,000 common shares for $4 per share. July 1 Issued 35,800 preferred shares for $40 per share. Sept. 1 Issued 44,000 common shares for $264,000. Oct. 1 Nov. 16 Jan. 5 Mar. Issued 249,000 common shares for $5 per share. Repurchased and retired 26,000 common shares at $4 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction Issued 14,400 common shares for $7 per share. 1 Repurchased and retired 9,400 common shares at $6 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. 25 Apr. 15 30 Issued 6,200 preferred shares for $60 per share. Declared a $84,000 cash dividend to the preferred shareholders, to shareholders of record on April 30, payable on May 15. Reported net income of $6 million for the year. (a) Record the above transactions for 2024, including any required entries to close dividends declared and net income. (Record journal entries in the order presented in the problem. List all debit entries before credit entries. 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 O for the amounts. Round average cost per share to 2 decimal places, e.g. 2.25 and final answers to O decimal places.) Transaction entries:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sunland Corporation, a publicly traded company, was incorporated on May 1, 2024. It is authorized to issue an unlimited number of $2
noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed
during the company's first year of operations:
May 5 Issued 750,000 common shares for $4 per share.
July 1
Sept. 1
Issued 35,800 preferred shares for $40 per share.
Issued 44,000 common shares for $264,000.
Oct.
1
Issued 249,000 common shares for $5 per share.
Nov. 16
Jan. 5
Mar. 1
Repurchased and retired 26,000 common shares at $4 per share. Determine the average cost of each repurchased
share to the nearest cent before recording this transaction.
Issued 14,400 common shares for $7 per share.
Repurchased and retired 9,400 common shares at $6 per share. Determine the average cost of each repurchased
share to the nearest cent before recording this transaction.
25 Issued 6,200 preferred shares for $60 per share
Apr. 15 Declared a $84,000 cash dividend to the preferred shareholders, to shareholders of record on April 30, payable on
May 15.
30
Reported net income of $6 million for the year.
(a)
Record the above transactions for 2024, including any required entries to close dividends declared and net income. (Record journal
entries in the order presented in the problem. List all debit entries before credit entries. 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 O for the
amounts. Round average cost per share to 2 decimal places, eg. 2.25 and final answers to O decimal places.)
Transaction entries:
Date
Account Titles
Jan. 5
Cash
Debit
10080
Credi
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