The balance sheet for Tactex Controls Inc., provincially incorporated in 2021, reported the following components of equity December 31, 2022. Contributed capital: Preferred shares, $2.0 cumulative, unlimited shares Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2022 authorized; 19,000 shares issued and outstanding Common shares, unlimited shares authorized; 74,000 shares issued and outstanding. Total contributed capital Retained earnings Total equity 2023 In 2023 and 2024, the company had the following transactions affecting shareholders and the equity accounts: Jan. $ 391,000 734,000 $1,125,000 377,000 $1,502,000 1 Sold 29,000 common shares at $10.54 per share. 5 The directors declared a total cash dividend of $230,000 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 $156,700. The average issue price was $20 per share. Dec. 31 Closed the dividend accounts along with the $576,700 credit balance in the Income Summary account. 2024 Sept. 5 The directors declared the required cash dividend on the preferred shares and a $1.3 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 $543,100 credit balance in the Income Summary account. 1) Prepare a statement of changes in equity for the year ended December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) 2). Prepare the equity section of the company's balance sheet as of December 31, 2024.
The balance sheet for Tactex Controls Inc., provincially incorporated in 2021, reported the following components of equity December 31, 2022. Contributed capital: Preferred shares, $2.0 cumulative, unlimited shares Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2022 authorized; 19,000 shares issued and outstanding Common shares, unlimited shares authorized; 74,000 shares issued and outstanding. Total contributed capital Retained earnings Total equity 2023 In 2023 and 2024, the company had the following transactions affecting shareholders and the equity accounts: Jan. $ 391,000 734,000 $1,125,000 377,000 $1,502,000 1 Sold 29,000 common shares at $10.54 per share. 5 The directors declared a total cash dividend of $230,000 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 $156,700. The average issue price was $20 per share. Dec. 31 Closed the dividend accounts along with the $576,700 credit balance in the Income Summary account. 2024 Sept. 5 The directors declared the required cash dividend on the preferred shares and a $1.3 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 $543,100 credit balance in the Income Summary account. 1) Prepare a statement of changes in equity for the year ended December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) 2). Prepare the equity section of the company's balance sheet as of December 31, 2024.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
Preferred shares, $2.0 cumulative, unlimited shares
Tactex Controls Inc.
Equity Section of the Balance Sheet
December 31, 2022
authorized; 19,000 shares issued and outstanding
Common shares, unlimited shares authorized; 74,000 shares
issued and outstanding
Total contributed capital
Retained earnings
Total equity
2023
In 2023 and 2024, the company had the following transactions affecting shareholders and the equity accounts:
$ 391,000
734,000
$1,125,000
377,000
$1,502,000
Jan.
1 Sold 29,000 common shares at $10.54 per share.
5 The directors declared a total cash dividend of $230,000 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 $156,700. The average issue price was $20
per share.
Dec. 31 Closed the dividend accounts along with the $576,700 credit balance in the Income
Summary account.
2024
Sept. 5 The directors declared the required cash dividend on the preferred shares and a
$1.3 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 $543,100 credit balance in the
Income Summary account.
1)Prepare a statement of changes in
equity for the year ended December 31,
2024. (Amounts to be deducted should
be indicated by a minus sign.)
2). Prepare the equity section of the
company's balance sheet as of December
31, 2024.
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