The balance sheet for Tactex Controls Inc., provincially incorporated in 2021, reported the following components of equity on December 31, 2022. Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2022 Contributed capital: Preferred shares, $1.2 cumulative, unlimited shares authorized; 11,000 shares issued and outstanding Common shares, unlimited shares authorized; 66,000 shares issued and outstanding Total contributed capital Retained earnings Total equity $ 383,000 726,000 $1,109,000 369,000 $1,478,000 In 2023 and 2024, the company had the following transactions affecting shareholders and the equity accounts: 2023 Jan. 1 Sold 21,000 common shares at $9.74 per share. 5 The directors declared a total cash dividend of $222,000 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 $155,900. The average issue price was $20 per share. Dec. 31 Closed the dividend accounts along with the $575,900 credit balance in the Income Summary account. 2024 Sept. 5 The directors declared the required cash dividend on the preferred shares and a $0.5 per common share cash dividend payable on October 28 to the October 5 shareholders of record.
The balance sheet for Tactex Controls Inc., provincially incorporated in 2021, reported the following components of equity on December 31, 2022. Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2022 Contributed capital: Preferred shares, $1.2 cumulative, unlimited shares authorized; 11,000 shares issued and outstanding Common shares, unlimited shares authorized; 66,000 shares issued and outstanding Total contributed capital Retained earnings Total equity $ 383,000 726,000 $1,109,000 369,000 $1,478,000 In 2023 and 2024, the company had the following transactions affecting shareholders and the equity accounts: 2023 Jan. 1 Sold 21,000 common shares at $9.74 per share. 5 The directors declared a total cash dividend of $222,000 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 $155,900. The average issue price was $20 per share. Dec. 31 Closed the dividend accounts along with the $575,900 credit balance in the Income Summary account. 2024 Sept. 5 The directors declared the required cash dividend on the preferred shares and a $0.5 per common share cash dividend payable on October 28 to the October 5 shareholders of record.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2024
Sept. 5 The directors declared the required cash dividend on the preferred shares and a $0.5 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 $542,300 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
No
1
View journal entry worksheet
Date
Jan 01, 2023
Common shares
General Journal
Debit
Credit
203,400
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, $1.2 cumulative, unlimited shares authorized;
11,000 shares issued and outstanding
Common shares, unlimited shares authorized; 66,000 shares issued and
Tactex Controls Inc.
Equity Section of the Balance Sheet
December 31, 2022
outstanding
Total contributed capital
Retained earnings
Total equity
2023
$
383,000
726,000
$1,109,000
369,000
$1,478,000
In 2023 and 2024, the company had the following transactions affecting shareholders and the equity accounts:
Jan.
1 Sold 21,000 common shares at $9.74 per share.
5 The directors declared a total cash dividend of $222,000 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 $155,900. The average issue price was $20 per share.
Dec. 31 Closed the dividend accounts along with the $575,900 credit balance in the Income Summary
account.
2024
Sept. 5 The directors declared the required cash dividend on the preferred shares and a $0.5 per
common share cash dividend payable on October 28 to the October 5 shareholders of record.
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