Sunset Corporation has the following account balances on January 1, 2020: $ 250,000 Preferred Shares, $5, non-cumulative, non-voting, 10,000 issued Common shares, unlimited number authorized, no par value, voting shares, 150,000 issued $1,500,000 (Virt Retained Earnings $ 375,000 The following take place during 2020: Mar 1 a $0.50 / share cash dividend is declared on common shares Mar 31 - date of payment - 2-for-1 stock split Jul 1 Aug 15 - 10% stock dividend declared on common shares, share price is $11 Sep 15 - date of issuance of stock dividend Dec 15 - preferred shares dividend is paid Dec 31 - Net income of $275,000 Instructions A) Make all of the necessary journal entries. B) Determine the 2020 year-end balance in the preferred shares, common shares and retained earnings accounts.
Sunset Corporation has the following account balances on January 1, 2020: $ 250,000 Preferred Shares, $5, non-cumulative, non-voting, 10,000 issued Common shares, unlimited number authorized, no par value, voting shares, 150,000 issued $1,500,000 (Virt Retained Earnings $ 375,000 The following take place during 2020: Mar 1 a $0.50 / share cash dividend is declared on common shares Mar 31 - date of payment - 2-for-1 stock split Jul 1 Aug 15 - 10% stock dividend declared on common shares, share price is $11 Sep 15 - date of issuance of stock dividend Dec 15 - preferred shares dividend is paid Dec 31 - Net income of $275,000 Instructions A) Make all of the necessary journal entries. B) Determine the 2020 year-end balance in the preferred shares, common shares and retained earnings accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sunset Corporation has the following account balances on January 1, 2020:
$ 250,000
Preferred Shares, $5, non-cumulative, non-voting, 10,000 issued
Common shares, unlimited number authorized, no par value, voting
shares, 150,000 issued
$1,500,000
Retained Earnings
$ 375,000
Ex
The following take place during 2020:
Mar 1
- a $0.50 / share cash dividend is declared on common shares
Mar 31 - date of payment
Jul 1
Aug 15 - 10% stock dividend declared on common shares, share price is $11
Sep 15 - date of issuance of stock dividend
Dec 15 - preferred shares dividend is paid
Dec 31 - Net income of $275,000
- 2-for-1 stock split
Instructions
A)
Make all of the necessary journal entries.
B)
Determine the 2020 year-end balance in the preferred shares, common shares and
retained earnings accounts.
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