2. Prepare a statement of changes in equity for the year ended December 31, 2021. (Amounts to be deducted should be indicated bya minus sign.)Balance, January 1Balance, December 31Contributed Capital:Total contributed capitalTACTEX CONTROLS INC.Statement of Changes in EquityFor Year Ended December 31, 2021PreferredSharesCommonSharesTotal equity$0 $RetainedEarnings0 $3. Prepare the equity section of the company's balance sheet as of December 31, 2021.Total EquityTACTEX CONTROLS INC.Equity Section of the Balance SheetDecember 31, 20210 $0$$00 The balance sheet for Tactex Controls Inc., provincially incorporated in 2018, reported the following components of equity onDecember 31, 2019.Tactex Controls Inc.Equity Section of the Balance SheetDecember 31, 2019Contributed capital:Preferred shares, $2.3 cumulative, unlimited sharesauthorized; 22,000 shares issued and outstandingCommon shares, unlimited shares authorized; 77,000 sharesissued and outstandingTotal contributed capitalRetained earningsTotal equity394,000737,000$1,131,000380,000$1,511,0002020Jan. 1 Sold 32,000 common shares at $10.84 per share.5$In 2020 and 2021, the company had the following transactions affecting shareholders and the equity accounts:The directors declared a total cash dividend of $233,000 payable on Feb. 28 to theFeb. 5 shareholders of record. Dividends had not been declared for the years 2018.and 2019. All of the preferred shares had been issued during 2018.Feb. 28 Paid the dividends declared on January 5.July 1 Sold preferred shares for a total of $157,000. The average issue price was $25 pershare.Dec. 31 Closed the dividend accounts along with the $577,000 credit balance in the IncomeSummary account.2021Sept. 5 The directors declared the required cash dividend on the preferred shares and a$1.6 per common share cash dividend payable on October 28 to the October 5shareholders of record.Oct. 28 Paid the dividends declared on September 5.Dec. 31 Closed the Cash Dividends account along with the $543,400 credit balance in theIncome Summary account.Required:1. Prepare journal entries to record the transactions and closings for 2020 and 2021. The company uses a cash dividends account torecord declared dividends.

The statement of change in equity and the equity portion of balance sheet are parts of the financial…

The balance sheet for Tactex Controls Inc., provincially incorporated in 2018, reported the following components of equity on December 31, 2019. Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2019 Contributed capital: Preferred shares, $2.3 cumulative, unlimited shares authorized; 22,000 shares issued and outstanding Common shares, unlimited shares authorized; 77,000 shares issued and outstanding Total contributed capital Retained earnings Total equity $ 394,000 737,000 $1,131,000 380,000 $1,511,000 In 2020 and 2021, the company had the following transactions affecting shareholders and the equity accounts: 2020 Jan. 1 Sold 32,000 common shares at $10.84 per share. 5 The directors declared a total cash dividend of $233,000 payable on Feb. 28 to the Feb. 5 shareholders of record. Dividends had not been declared for the years 2018 and 2019. All of the preferred shares had been issued during 2018. Feb. 28 Paid the dividends declared on January 5. July 1 Sold preferred shares for a total of $157,000. The average issue price was $25 per share Dec. 31 Closed the dividend accounts along with the $577,000 credit balance in the Income Summary account. 2021 Sept. 5 The directors declared the required cash dividend on the preferred shares and a $1.6 per common share cash dividend payable on October 28 to the October 5 shareholders of record. Oct. 28 Paid the dividends declared on September 5. Dec. 31 Closed the Cash Dividends account along with the $543,400 credit balance in the Income Summary account. Required: 1. Prepare journal entries to record the transactions and closings for 2020 and 2021. The company uses a cash dividends account to record declared dividends.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q