Reference no: EM133132416

Question - Timpano Communication Inc. reported the following shareholders' equity information on December 31, 2019:

The following transactions took place during 2020:

Jan. 14 Declared a $90,000 cash dividend, payable on March 1 to the shareholders of record on February 1. Indicate the amount payable to each class of shareholder.

Feb. 28 Issued 10,000 common shares for $6.00 per share.

Mar. 1 Paid the cash dividend declared on January 14.

Apr. 1 Declared a 10 percent stock dividend on the common shares, distributable on May 2 to the shareholders of record on April 15. The market value of the shares was $6.40 per share.

May 2 Distributed the stock dividend declared on April 1.

Jul. 4 Repurchased 3,000 of the company's own common shares at $7.00 per share.

Sep. 2 Issued 2,500 common shares for $7.50 per share.

Nov. 2 Split the common shares 2 for 1.

Dec. 31 Reported net income of $150,000. Closed the Income Summary account.

Required - Record the transactions in the general journal. Explanations are not required. Prepare the statement of shareholders' equity for the year ended December 31, 2020.