Prepare journal entries to record the transactions

Assignment Help Accounting Basics

Reference no: EM132768174

Question: Zen Aerospace Corporation reported the following equity account balances on December 31, 2019:

Preferred shares, $3.60 cumulative, unlimited shares authorized $0

Common shares, unlimited shares authorized, 23,500 shares issued and outstanding 648,600

Retained earnings 331,000

In 2020, the company had the following transactions affecting shareholders and the shareholders' equity accounts:

Jan.1 Purchased and retired 2,700 common shares at $36 per share. 14 The directors declared an 9% share dividend distributable on February 5 to the January 30 shareholders of record. The shares were trading at $46.30 per share. 30 Date of record regarding the 9% share dividend. Feb.5 Date of distribution regarding the 9% share dividend. July6 Sold 5,700 preferred shares at $67 per share. Sept.5 The directors declared a total cash dividend of $48,006 payable on October 5 to the September 20 shareholders of record. Oct.5 The cash dividend declared on September 5 was paid. Dec.31 Closed the $472,600 credit balance in the Profit Summary account to Retained Earnings. 31 Closed the dividend accounts.

Required: 1. Prepare journal entries to record the transactions and closings for 2020 (assume the retirements were the first ever recorded by Zen Aerospace). Assume share dividends and cash dividends account is used when dividends are declared. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Prepare the statement of changes in equity for the year ended December 31, 2020. (Amounts to be deducted should be indicated by a minus sign. Round the final answer to the nearest whole dollar.)

Reference no: EM132768174

Questions Cloud

What is your assessment of the company solvency : What is your assessment of the company's solvency applying the current ratio? Why? What is your assessment of company's solvency applying the debt-to-equity.

How much do you have to have saved at retirement to fund : You are trying to calculate how much money you should have at retirement. On your 65th birthday you will retire and immediately make your first withdrawal.

Prepare the statement of profit or loss : Prepare the statement of profit or loss and other comprehensive income of the company according to the function of expenditure method

What investment type do you think poses the lowest risk : What investment type do you think poses the lowest risk and highest risk? Why? Suppose that you have saves 1,000,000 today which you can invest in a Philippine.

Prepare journal entries to record the transactions : Prepare journal entries to record the transactions and closings for 2020 (assume the retirements were the first ever recorded by Zen Aerospace).

How much was the net capital gain for the year : An individual sold the following assets during the year: Proceeds Cost: Necklace $1900 $500. How much was the net capital gain for the year?

Discuss the finance and investment cycle : Discuss the finance and investment cycle. Pick one of the significant accounts and discuss what audit procedures you would do to satisfy two of the relevant.

Prepare year-end journal entries for income tax : ITA Beverages Inc. has a policy of carrying back tax losses before carrying any remaining amounts forward. ITA Beverages reported the following pre-tax.

How much Royalty Expense should Jupiter report : Jupiter sales of the Garner book totaled P3,000,000 for the last half of 2017. How much Royalty Expense should Jupiter report in its 2017 income statement

User Account

All Pages