Reference no: EM132547782
Crown Point Corporation, a publicly traded company, is authorized to issue 219,000 $4 cumulative preferred shares and an unlimited number of common shares. On January 1, 2018, the general ledger contained the following shareholders' equity accounts:
Preferred shares (8,600 shares issued ) $473,000
Common shares (72,800 shares issued) 1,092,000
Contributed surplus 24,300
Retained earnings 788,000
Accumulated other comprehensive income 10,400
The following equity transactions occurred in 2018:
Feb.6 Issued 9,200 preferred shares for $561,200.
Apr.6 Issued 20,800 common shares for $592,800.
april27 Reacquired and retired 3,300 common shares at $17 per share.May29Declared a semi-annual cash dividend to the preferred shareholders of record at June 12, payable July 1.
Aug.22 Issued 9,000 common shares in exchange for a building. At the time of the exchange, the building was valued at $178,000 and the common shares at $163,000.
Dec.14 The board of directors decided there were insufficient funds to declare the semi-annual dividend to the preferred shareholders.31Net income for the year was $561,000.
Question 1: Record the above transactions, including any entries required to close dividends and net income.
Question 2: Open T accounts and post to the shareholders' equity accounts.
Question 3: Prepare the statement of changes in equity for the year.
Question 4: Prepare the shareholders' equity section of the statement of financial position at December 31.