Talize Inc. has the following balances at December 31, 2014, its year end: Preferred Shares, $4.25 cumulative (dividends in arrears for 2013 and 2014) $1,250,000 100,000 shares authorized, 25,000 issues and outstanding Common Shares, unlimited authorized, 2,500,000 shares outstanding Retained Earnings During 2015: Jan 2 May 5 July 15 Sept 25 Oct 31 Required: 4,500,000 5,000,000 Issued 20,000 common shares in exchange for machinery fair valued at $40,000. The common shares had a market value of $1.80 per share All required dividends were declared on preferred shares and a $.20 common share cash dividend was declared on common. Dividends will be distributed on Jan 2, 2016. Separate both share classes. Retired 5,000 preferred shares at $58 per share Talize issued 2,000 preferred shares and 1,000 common shares to an investor for $100,000. At the issue date, the market value of the preferred shares was $45 per share and the market value of the common shares was $6 per share Talize declared and issued a 5% share dividend on the common shares. The market value of the shares at declaration date was $3.00 per share 1. Journalize all the transactions for 2015 2. Prepare, in good form, the Shareholders' Equity section of the balance sheet at its year end, December 31, 2015. Net income for 2015 was $520,000. Total comprehensive income for 2015 was $650,000 which includes net income plus a gain of $130,000 of foreign exchange gains caused by foreign subsidiary. Use a proper three-line title.
Talize Inc. has the following balances at December 31, 2014, its year end: Preferred Shares, $4.25 cumulative (dividends in arrears for 2013 and 2014) $1,250,000 100,000 shares authorized, 25,000 issues and outstanding Common Shares, unlimited authorized, 2,500,000 shares outstanding Retained Earnings During 2015: Jan 2 May 5 July 15 Sept 25 Oct 31 Required: 4,500,000 5,000,000 Issued 20,000 common shares in exchange for machinery fair valued at $40,000. The common shares had a market value of $1.80 per share All required dividends were declared on preferred shares and a $.20 common share cash dividend was declared on common. Dividends will be distributed on Jan 2, 2016. Separate both share classes. Retired 5,000 preferred shares at $58 per share Talize issued 2,000 preferred shares and 1,000 common shares to an investor for $100,000. At the issue date, the market value of the preferred shares was $45 per share and the market value of the common shares was $6 per share Talize declared and issued a 5% share dividend on the common shares. The market value of the shares at declaration date was $3.00 per share 1. Journalize all the transactions for 2015 2. Prepare, in good form, the Shareholders' Equity section of the balance sheet at its year end, December 31, 2015. Net income for 2015 was $520,000. Total comprehensive income for 2015 was $650,000 which includes net income plus a gain of $130,000 of foreign exchange gains caused by foreign subsidiary. Use a proper three-line title.
Financial Accounting Intro Concepts Meth/Uses
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ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter17: Synthesis And Extensions
Section: Chapter Questions
Problem 6E
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Transcribed Image Text:Talize Inc. has the following balances at December 31, 2014, its year end:
Preferred Shares, $4.25 cumulative (dividends in arrears for 2013 and 2014) $1,250,000
100,000 shares authorized, 25,000 issues and outstanding
Common Shares, unlimited authorized, 2,500,000 shares outstanding
Retained Earnings
During 2015:
Jan 2
May 5
July 15
Sept 25
Oct 31
Required:
4,500,000
5,000,000
Issued 20,000 common shares in exchange for machinery fair valued at $40,000.
The common shares had a market value of $1.80 per share
All required dividends were declared on preferred shares and a $.20 common share
cash dividend was declared on common. Dividends will be distributed on Jan 2.
2016. Separate both share classes.
Retired 5,000 preferred shares at $58 per share
Talize, issued 2,000 preferred shares and 1,000 common shares to an investor for
$100,000. At the issue date, the market value of the preferred shares was $45 per
share and the market value of the common shares was $6 per share
Talize declared and issued a 5% share dividend on the common shares. The market
value of the shares at declaration date was $3.00 per share
1. Journalize all the transactions for 2015
2. Prepare, in good form, the Shareholders' Equity section of the balance sheet at its year end,
December 31, 2015. Net income for 2015 was $520,000. Total comprehensive income for 2015
was $650,000 which includes net income plus a gain of $130,000 of foreign exchange gains caused
by foreign subsidiary. Use a proper three-line title.
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