Reference no: EM133146251

Question - Callaghan Grocery Inc.'s balance sheet showed the following account information at November 30, 2019; 290,000 common shares authorized, with 86,000 shares issued, a Common Shares balance of $232,200, and the Retained Earnings account had a credit balance of $164,000. During 2020, the company completed the following selected transactions:

Mar. 15 Repurchased 9,000 of the company's own common shares at $3.00 per share.

Apr. 29 Declared a 10 percent stock dividend on the 77,000 outstanding common shares to holders of record on May 2, with distribution set for May 16. The market value of Callaghan's common shares was $5.40 per share.

May 16 Issued the stock dividend shares.

Nov. 19 Split the common shares 2 for 1 by issuing one new share for each old share held on December 30, 2020.

Nov. 30 Earned net income of $145,000 during the year.

Required -

1. Record the transactions in the general journal. Explanations are not required.

2. Prepare the shareholders' equity section of the balance sheet at November 30, 2020.

3. Calculate the average issue price on November 30, 2020. Assume no shares were issued or repurchased after November 19, 2020.