Make a journal entry for the transaction

Assignment Help Financial Accounting

Reference no: EM132811128

Question - The following is part of the equity from the financial position of WERECAU Corp as at 31 December 2018:

Share capital - preference 8% $ 120 par value (60,000 shares authorized, 35,500 shares issued and outstanding) $4,260,000

Share premium - preference $560,000

Share capital - ordinary $ 40 par value (100,000 shares authorized, 65,000 shares issued and outstanding) $2,600,000

Share premium - ordinary $520,000

Retained earnings $860,000

Treasury shares (10,000 shares at cost) $450,000

Transactions that occurred throughout 2018 relating to stock equity were:

January 10 Issued 1,300 special shares at $ 134 per share.

March 13 Issued 12,000 shares of common stock that have a market price of $516,000.

June 23 Declared cash dividends for special shareholders and common stockholders.

July 25 Paid cash dividends declared on June 23.

October 24 Declared 10% dividend for common stockholders, current market price of $ 44 per share.

October 29 October Distributed the above share dividend.

November 30 Sold 3,500 treasury shares for a total price of $ 157,500.

December 31st Estimated summary of income with a credit balance of $ 1,570,000 is closed as well as dividends.

Required -

1. Make a journal entry for the transaction above!

2. Present it in the shareholder's equity statement!

Reference no: EM132811128

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