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The balance sheet for Tactex Controls Inc., provincially incorporated in 2021, reported the following components of equity on December 31, 2022 Contributed capital: Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2022 Preferred shares, $1.8 cumulative, unlimited shares authorized; 17,000 shares issued and outstanding Common shares, unlimited shares authorized; 72,000 shares issued and outstanding Total contributed capital Retained earnings Total equity $ 389,000 732,000 $1,121,000 375,000 $1,496,000 In 2023 and 2024, the company had the following transactions affecting shareholders and the equity accounts: 2023 Jan. 1 Sold 27,000 common shares at $18.34 per share. 5 The directors declared a total cash dividend of $228,000 payable on Feb. 28 to the Feb. 5 shareholders of record. Dividends had not been declared for the years 2021 and 2022. All of the preferred shares had been issued during 2021. Feb. 28 Paid the dividends declared on January 5. July 1 Sold preferred shares for a total of $156,500. The average issue price was $20 per share. 31 Closed the dividend accounts along with the $576,500 credit balance in the Income Summary account. Dec. 2024 Sept. 5 The directors declared the required cash dividend on the preferred shares and a $1.1 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 $542,900 credit balance in the Income Summary account. Required: 1. Prepare journal entries to record the transactions and closings for 2023 and 2024. The company uses a cash dividends account to record declared dividends.

The balance sheet for Tactex Controls Inc., provincially incorporated in 2021, reported the following components of equity on December 31, 2022 Contributed capital: Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2022 Preferred shares, $1.8 cumulative, unlimited shares authorized; 17,000 shares issued and outstanding Common shares, unlimited shares authorized; 72,000 shares issued and outstanding Total contributed capital Retained earnings Total equity $ 389,000 732,000 $1,121,000 375,000 $1,496,000 In 2023 and 2024, the company had the following transactions affecting shareholders and the equity accounts: 2023 Jan. 1 Sold 27,000 common shares at $18.34 per share. 5 The directors declared a total cash dividend of $228,000 payable on Feb. 28 to the Feb. 5 shareholders of record. Dividends had not been declared for the years 2021 and 2022. All of the preferred shares had been issued during 2021. Feb. 28 Paid the dividends declared on January 5. July 1 Sold preferred shares for a total of $156,500. The average issue price was $20 per share. 31 Closed the dividend accounts along with the $576,500 credit balance in the Income Summary account. Dec. 2024 Sept. 5 The directors declared the required cash dividend on the preferred shares and a $1.1 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 $542,900 credit balance in the Income Summary account. Required: 1. Prepare journal entries to record the transactions and closings for 2023 and 2024. The company uses a cash dividends account to record declared dividends.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
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The balance sheet for Tactex Controls Inc., provincially incorporated in 2021, reported the following components of equity on December 31, 2022. Contributed capital: Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2022 Preferred shares, $1.8 cumulative, unlimited shares authorized; 17,000 shares issued and outstanding Common shares, unlimited shares authorized; 72,000 shares issued and outstanding Total contributed capital Retained earnings Total equity $ 389,000 732,000 $1,121,000 375,000 $1,496,000 In 2023 and 2024, the company had the following transactions affecting shareholders and the equity accounts: 2823 Jan. 1 Sold 27,000 common shares at $10.34 per share. 5 The directors declared a total cash dividend of $228, eee payable on Feb. 28 to the Feb. 5 shareholders of record. Dividends had not been declared for the years 2021 and 2022. A11 of the preferred shares had been issued during 2021. Feb. 28 Paid the dividends declared on January 5. July 1 Sold preferred shares for a total of $156,500. The average issue price was $20 per share. Dec. 31 Closed the dividend accounts along with the $576,500 credit balance in the Income Summary account. 2024 Sept. 5 The directors declared the required cash dividend on the preferred shares and a $1.1 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 $542,900 credit balance in the Income Summary account. Required: 1. Prepare journal entries to record the transactions and closings for 2023 and 2024. The company uses a cash dividends account to record declared dividends. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 Record the issuance of 27,000 common shares Note: Enter debits before credits. Date Jan 01, 2023 General Journal Debit Credit
Transcribed Image Text:The balance sheet for Tactex Controls Inc., provincially incorporated in 2021, reported the following components of equity on December 31, 2022. Contributed capital: Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2022 Preferred shares, $1.8 cumulative, unlimited shares authorized; 17,000 shares issued and outstanding Common shares, unlimited shares authorized; 72,000 shares issued and outstanding Total contributed capital Retained earnings Total equity $ 389,000 732,000 $1,121,000 375,000 $1,496,000 In 2023 and 2024, the company had the following transactions affecting shareholders and the equity accounts: 2823 Jan. 1 Sold 27,000 common shares at $10.34 per share. 5 The directors declared a total cash dividend of $228, eee payable on Feb. 28 to the Feb. 5 shareholders of record. Dividends had not been declared for the years 2021 and 2022. A11 of the preferred shares had been issued during 2021. Feb. 28 Paid the dividends declared on January 5. July 1 Sold preferred shares for a total of $156,500. The average issue price was $20 per share. Dec. 31 Closed the dividend accounts along with the $576,500 credit balance in the Income Summary account. 2024 Sept. 5 The directors declared the required cash dividend on the preferred shares and a $1.1 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 $542,900 credit balance in the Income Summary account. Required: 1. Prepare journal entries to record the transactions and closings for 2023 and 2024. The company uses a cash dividends account to record declared dividends. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 Record the issuance of 27,000 common shares Note: Enter debits before credits. Date Jan 01, 2023 General Journal Debit Credit
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