your finer answers The balance sheet for Tropical Way Limited (TWL) reported the following components of equity on December 31, 2022: Common shares, unlimited shares authorized, 20,400 shares issued and outstanding-$372,000 Retained earnings-$220,000 Total equity (common shares and retained earnings)-5592,000 2023, Tropical Way Limited (TWL) had the following transactions affecting shareholders and the equity accounts: Jan. 5 The directors declared a $3.60 per share cash dividend payable on Feb. 28 to the Feb. 5 shareholders of record. Feb. 28 Paid the dividend declared on January 5. Jul. 6 Sold 950 common shares at $38.80 per share. Aug. 22 Sold 1,450 common shares at $27.60 per share. Sept. 5 The directors declared a $3.60 per share cash dividend payable on October 28 to the October 5 shareholders of record. Oct. 28 Paid the dividend declared on September 5. Dec. 31 Closed the $347,600 credit balance in the Income Summary account.
your finer answers The balance sheet for Tropical Way Limited (TWL) reported the following components of equity on December 31, 2022: Common shares, unlimited shares authorized, 20,400 shares issued and outstanding-$372,000 Retained earnings-$220,000 Total equity (common shares and retained earnings)-5592,000 2023, Tropical Way Limited (TWL) had the following transactions affecting shareholders and the equity accounts: Jan. 5 The directors declared a $3.60 per share cash dividend payable on Feb. 28 to the Feb. 5 shareholders of record. Feb. 28 Paid the dividend declared on January 5. Jul. 6 Sold 950 common shares at $38.80 per share. Aug. 22 Sold 1,450 common shares at $27.60 per share. Sept. 5 The directors declared a $3.60 per share cash dividend payable on October 28 to the October 5 shareholders of record. Oct. 28 Paid the dividend declared on September 5. Dec. 31 Closed the $347,600 credit balance in the Income Summary account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Dec. 31 Closed the Cash Dividends account.
Q3 Required:
Prepare journal entries to record the transactions and closing for 2023. No need to provide journal description.
Use the journal worksheet provided below. Also, use the applicable accounts provided below.
The company uses a Cash Dividend account when dividends are declared.
Q3 Journal Entries:
General Journal-Accounts (select from below)
Transaction No.
Date
Debit
Credit
Transcribed Image Text:1) ROURG decimal into whole dollars when entering your final answers.
The balance sheet for Tropical Way Limited (TWL) reported the following components of equity on December 31, 2022:
Common shares, unlimited shares authorized, 20,400 shares issued and outstanding-$377,000
Retained earnings- $220,000
Total equity (common shares and retained earnings)-5592,000
In 2023, Tropical Way Limited (TWL) had the following transactions affecting shareholders and the equity accounts:
Jan. 5 The directors declared a $3.60 per share cash dividend payable on Feb. 28 to the Feb. 5 shareholders of record.
Feb. 28 Paid the dividend declared on January 5,
Jul. 6 Sold 950 common shares at $38.80 per share.
Aug. 22 Sold 1,450 common shares at $27.60 per share..
Sept. 5 The directors declared a $3.60 per share cash dividend payable on October 28 to the October 5 shareholders of record.
Oct. 28 Paid the dividend declared on September 5,
Dec. 31 Closed the $347,600 credit balance in the Income Summary account.
Der 31 Closed the Cash Dividends account
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