Prepare the shareholders equity section of the statement

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Question - Grouper Corporation's charter authorized 1 million shares of $12 par value common shares, and 200,000 shares of 5% cumulative and non-participating preferred shares, with a par value of $100 per share. The corporation made the following share transactions through December 31, 2020: 260,000 common shares were issued for $3.64 million and 9,000 preferred shares were issued for machinery valued at $1,388,000. Subscriptions for 10,500 common shares have been taken, and 25% of the subscription price of $16 per share has been collected. The shares will be issued upon collection of the subscription price in full. In addition, 9,000common shares have been repurchased for $15 and retired. The Retained Earnings balance is $150,000 before considering the transactions above.

Required -

1. Prepare the shareholders' equity section of the SFP in good form.

2. Prepare the shareholders' equity section of the statement of financial position in good form. Assume that the common shares and preferred shares are no par.

Reference no: EM132835155

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