Reference no: EM132484579

Ottawa Enterprises Ltd. reported the following Shareholder's Equity balances at December 31, 2019:

Contributed capital:

Point 1: Preferred shares, $1, non-cumulative, callable, 100,000 shares authorized $1,640,180 Common shares, 100,000 shares authorized $515,017 Contributed surplus (from retirement of common shares) $111,121 Retained earnings $1,532,911 Call price for preferred shares $109 Number of preferred shares issued 31,463 Number of common shares issued 75,752 The following transactions took place in 2020: January 20 Redeemed 1,400 preferred shares at the call price.

Point 2: January 28 Declared dividends in the amount of $117,000. Assume that dividends will not be paid until March 31, 2020. February 28 Retired 9,415 common shares, paying a share repurchase price of $14. March 2 Declared and distributed a 3% common stock dividend.

Point 3: The market value of each common share on March 2 was $13. Assume that common shares are issued on the date of declaration.

Required:

Question 1: Prepare journal entries for each of the above transactions for 2020.