Zen Aerospace Corporation reported the following equity account balances on December 31, 2022: Preferred shares, $3.60 cumulative, unlimited shares authorized Common shares, unlimited shares authorized, 23,500 shares issued and outstanding Retained earnings 648,600 331,000 In 2023, the company had the following transactions affecting shareholders and the shareholders' equity accounts: Jan. 1 Purchased and retired 2,700 common shares at $36 per share. 14 The directors declared an 9% share dividend distributable on February 5 to the January 30 shareholders of record. The shares were trading at $46.30 per share. 30 Date of record regarding the 9% share dividend. 5 Date of distribution regarding the 9% share dividend. Feb. July 6 Sold 5,700 preferred shares at $67 per share. Sept. 5 The directors declared a total cash dividend of $48,006 payable on October 5 to the September 20 shareholders of record. Oct. 5 The cash dividend declared on September 5 was paid. Dec. 31 Closed the $472,600 credit balance in the Profit Summary account to Retained Earnings. 31 Closed the dividend accounts. Required 1. Prepare journal entries to record the transactions and closings for 2023 (assume the retirements were the first ever recorded by Zen Aerospace). Assume share dividends and cash dividends account is used when dividends are declared. (If no entry is required for a
Zen Aerospace Corporation reported the following equity account balances on December 31, 2022: Preferred shares, $3.60 cumulative, unlimited shares authorized Common shares, unlimited shares authorized, 23,500 shares issued and outstanding Retained earnings 648,600 331,000 In 2023, the company had the following transactions affecting shareholders and the shareholders' equity accounts: Jan. 1 Purchased and retired 2,700 common shares at $36 per share. 14 The directors declared an 9% share dividend distributable on February 5 to the January 30 shareholders of record. The shares were trading at $46.30 per share. 30 Date of record regarding the 9% share dividend. 5 Date of distribution regarding the 9% share dividend. Feb. July 6 Sold 5,700 preferred shares at $67 per share. Sept. 5 The directors declared a total cash dividend of $48,006 payable on October 5 to the September 20 shareholders of record. Oct. 5 The cash dividend declared on September 5 was paid. Dec. 31 Closed the $472,600 credit balance in the Profit Summary account to Retained Earnings. 31 Closed the dividend accounts. Required 1. Prepare journal entries to record the transactions and closings for 2023 (assume the retirements were the first ever recorded by Zen Aerospace). Assume share dividends and cash dividends account is used when dividends are declared. (If no entry is required for a
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Zen Aerospace Corporation reported the following equity account balances on December 31, 2022:
Preferred shares, $3.60 cumulative, unlimited shares
authorized
Common shares, unlimited shares authorized, 23,500 shares
issued and outstanding
Retained earnings
648,600
331,000
In 2023, the company had the following transactions affecting shareholders and the shareholders' equity accounts:
Jan. 1 Purchased and retired 2,700 common shares at $36 per share.
14 The directors declared an 9% share dividend distributable on February 5 to the January 30 shareholders of
record. The shares were trading at $46.30 per share.
30 Date of record regarding the 9% share dividend.
5 Date of distribution regarding the 9% share dividend.
Feb.
July 6 Sold 5,700 preferred shares at $67 per share.
Sept. 5 The directors declared a total cash dividend of $48,006 payable on October 5 to the September 20 shareholders
of record.
Oct. 5 The cash dividend declared on September 5 was paid.
Dec. 31 Closed the $472,600 credit balance in the Profit Summary account to Retained Earnings.
31 Closed the dividend accounts.
Required
1. Prepare journal entries to record the transactions and closings for 2023 (assume the retirements were the first ever recorded by Zen
Aerospace). Assume share dividends and cash dividends account is used when dividends are declared. (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
Transcribed Image Text:View transaction list
Journal entry worksheet
< 1 2 3
Record the recording of common shares stock dividend.
Note: Enter debits before credits.
Date
Jan 30
Record entry
4 5 6 7 8 9
Balance, January 1
Balance, December 31
General Journal
Clear entry
2. Prepare the statement of changes in equity for the year ended December 31, 2023. (Amounts to be deducted should be indicated
by a minus sign. Round the final answer to the nearest whole dollar.)
Debit
ZEN AEROSPACE CORPORATION
Statement of Changes in Equity
For Year Ended December 31, 2023
Preferred Common
Shares Shares
$
0 $
Credit
View general journal
0 $
Retained
Earnings
Total Equity
$
0 $
0
0
0
0
0
0
0
0
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