Reference no: EM132546346

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.