Reference no: EM133170267

Question - Vancouver Inc begins operations on January 1, 2020. During the year, the following transactions affect shareholder's equity.

1. Vancouver authorizes the issuance of 10 million shares.

2. 750,000 common shares are issued for $11 a share.

3. A 3:1 stock split is declared on common shares.

4. The company issued 300,000 common shares for $3/share.

5. A dividend of $0.60 per share is declared on common shares but is not yet paid.

6. The dividend on the common shares are paid.

7. A 2% stock dividend is declared on the common shares. On the date of declaration, the share's market price was $20.00.

8. The stock dividend is distributed.

Required -

Calculate the value of common shares and retained earings as of December 31, 2020. The company had net income of $6,200,000 in 2020.

Prepare the journal entries.