How do create journal entry necessary to record transaction

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Reference no: EM132619044

Rose Company, a public company, equity balances at December 31, 2019 as follows:

Common shares, no par value, 200,000 shares authorized,

10,000 issued, 10,000 outstanding 350,000

Contributed surplus 3,500

Retained earnings 150,000

Total shareholders' equity $503,500

Presented below is information related to Rose's capital transactions during 2020:

January 10 Rose repurchased 1,000 of its common shares for $40 each and retired them.

February 1 10,000 common shares are issued in exchange for land with an appraised market value of $303,000. The shares were trading at $31 each 1 month ago.

March 1 The directors declared a 10% stock dividend to common shareholders payable to shareholders of record. The shares were trading at $40 each on this date.

March 10. Distributed the dividends declared March 1. The shares were trading at $42 each on this date.

March 12 100 common shares and 3,000 preferred shares are sold for a lump sum amount of $303,800 cash. Common shares were trading at $38 per share on this date. Preferred shares, $2, cumulative, fully participating

December 28 The directors declared a total cash dividend of $36,000

December 30 Rose reacquired 1,000 of its common shares for $28,000 and retired them.

Required:

Problem 1: Prepare the journal entries necessary to record these transactions above. Show the date for each journal entry.

Reference no: EM132619044

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