Transactions of Sheridan Corporation are as follows: 1. The company is granted a charter that authorizes the issuance of 150,000 preferred shares and an unlimited number of common shares. 2. The founders of the corporation are issued 8,000 common shares for land valued by the board of directors at $232,000 (based on an independent valuation). 3. Sold 14,500 preferred shares for cash at $110 per share. 4. Repurchased and cancelled 2,900 outstanding preferred shares for cash at $100 per share. 5. Paid $86,000 in dividends that were declared in the previous period. 6. Repurchased for cash and cancelled 550 of the outstanding common shares issued in item 2 above at $46 per share. 7. Issued 2,400 preferred shares at $99 per share. Assuming that the company has retained earnings from operations of $1,132,000, prepare the shareholders' equity section of its SFP after considering all the transactions above.
Transactions of Sheridan Corporation are as follows: 1. The company is granted a charter that authorizes the issuance of 150,000 preferred shares and an unlimited number of common shares. 2. The founders of the corporation are issued 8,000 common shares for land valued by the board of directors at $232,000 (based on an independent valuation). 3. Sold 14,500 preferred shares for cash at $110 per share. 4. Repurchased and cancelled 2,900 outstanding preferred shares for cash at $100 per share. 5. Paid $86,000 in dividends that were declared in the previous period. 6. Repurchased for cash and cancelled 550 of the outstanding common shares issued in item 2 above at $46 per share. 7. Issued 2,400 preferred shares at $99 per share. Assuming that the company has retained earnings from operations of $1,132,000, prepare the shareholders' equity section of its SFP after considering all the transactions above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A32.
Transcribed Image Text:Transactions of Sheridan Corporation are as follows:
1. The company is granted a charter that authorizes the issuance of 150,000 preferred shares and an unlimited number of
common shares.
2. The founders of the corporation are issued 8,000 common shares for land valued by the board of directors at $232,000
(based on an independent valuation).
3.
Sold 14,500 preferred shares for cash at $110 per share.
4.
Repurchased and cancelled 2,900 outstanding preferred shares for cash at $100 per share.
5. Paid $86,000 in dividends that were declared in the previous period.
6.
Repurchased for cash and cancelled 550 of the outstanding common shares issued in item 2 above at $46 per share.
7. Issued 2,400 preferred shares at $99 per share.
Assuming that the company has retained earnings from operations of $1,132,000, prepare the shareholders' equity section of its
SFP after considering all the transactions above.
Shareholders' Equity
Share Capital
Preferred Shares
Common Shares
Total Share Capital
Contributed Surplus
Total Paid-in Capital
Retained Earnings
SHERIDAN CORPORATION
Statement of Financial Position (Partial)
Total Shareholders' Equity
$
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