Reference no: EM132938105

Some of the account balances of Vos Limited at December 31, 2019 are as follows:

$6 Preferred shares (2,200 shares authorized, 2,200 shares issued and outstanding) $520,000

Common shares (unlimited authorized, 48,000 shares issued and outstanding) 530,000

Contributed surplus 106,000Retained earnings 785,000

Accumulated other comprehensive income 23,124

• The price of the company's common shares has been increasing steadily on the market; it was $22 on January 1, 2020 and advanced to $25 by July 1 and to $28 at the end of 2020. The preferred shares are not openly traded but were appraised at $121 per share during 2020. Vos follows IFRS and had net income of $152,000 during 2020. For the purpose of this question, ignore any dividend entitlement to the preferred shareholders.
• The company declared a property dividend on April 1. Each common shareholder was to receive one share of Waterloo Corp. for every 12 shares outstanding. Vos had 8,200 shares of Waterloo (2% of the outstanding shares), and had purchased them in 2015 for $68,962. The shares are accounted for using the FV-OCI model. The accumulated other comprehensive income relates only to these shares. The fair value of the Waterloo shares was $17 per share on April 1. The property dividend was distributed on April 21 when the fair value of the Waterloo shares was $19.00. The Waterloo shares remained at a fair value of $19.00 until year end.

Problem 1: Prepare the journal entries.