west Company reported the following balances at December 31, 2016 ordinary share $500,000, share premium-ordinary $100,000, and retained earnings $250,000. During 2017, the following transactions affected shareholders 'equity 1. Issued preference shares with a par value of $125,000 for $200,000. 2. Purchased treasury shares (ordinary ) for $40,000. 3. Earned net income of $180,000. 4. Declared and paid cash dividends of $56,000. Instruction -prepare journal entries & closing entries for above transaction -Prepare the shareholders' equity section of west Company's December 31, 2017, balance sheet

west Company reported the following balances at December 31, 2016 ordinary share $500,000, share premium-ordinary $100,000, and retained earnings $250,000. During 2017, the following transactions affected shareholders 'equity 1. Issued preference shares with a par value of $125,000 for $200,000. 2. Purchased treasury shares (ordinary ) for $40,000. 3. Earned net income of $180,000. 4. Declared and paid cash dividends of $56,000. Instruction -prepare journal entries & closing entries for above transaction -Prepare the shareholders' equity section of west Company's December 31, 2017, balance sheet

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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