Reference no: EM132716376
The following is part of the equity from the financial position of WERECAU Corp as at 31 December 2018:
Share capital - preference 8% $ 120 par value (60,000 shares authorized,
35,500 shares issued and outstanding) ....................................... $ 4,260,000
Share premium - preference ................................. $ 560,000
Share capital - ordinary $ 40 par value (100,000 shares authorized,
65,000 shares issued and outstanding) ........................................... $ 2,600,000
Share premium - ordinary .............................. .. $ 520,000
Retained earnings ............................................................... .. $ 860,000
Treasury shares (10,000 shares at cost) ........................................... $ 450,000
Transactions that occurred throughout 2018 relating to stock equity were:
January 10 Issued 1,300 special shares at $ 134 per share.
March 13 Issued 12,000 shares of common stock that have a market price of $ 516,000.
23 June Declared cash dividends for special shareholders and common stockholders.
July 25 Paid cash dividends declared on June 23.
October 24 Declared 10% dividend for common stockholders, current market price of $ 44 per share.
29 October Distributed the above share dividend.
November 30 Sold 3,500 treasury shares for a total price of $ 157,500.
December 31st Estimated summary of income with a credit balance of $ 1,570,000 is closed as well as dividends.
Requested:
Problem 1. Make a journal entry for the transaction above!
Problem 2. Present it in the shareholder's equity statement!