Reference no: EM132860874

Question - ABC Company a public company, had the following accounts in Shareholders equity on January 1, 2020 preferred shares $1.20 cumulative, 1:2 conversion option to common shares 30000 issued and outstanding (one preferred shares converts to 2 common shares) $150,000 common shares unlimited authorized and $50,000 issued and outstanding $3025,000 contributed surplus redemption of common shares $38,000 Retained earnings $4857,000 Accumulated OCI (75,400)

Provide the journal entry to each of the following 2020 transactions for ABC

1. January 17 redeemed 17,000 common shares for 145,550

2. March 18 20,000 preferred shares were converted to common shares for 1:2 basis. one preferred shares converts to 2 common shares

3. August 14 acquired a piece of equipment by issuing 20,000 common shares. The equipment has a appraised fair value of $145,000 and had a net book value on the books of the seller of $110,000. The shares of ABC company has been listed on the TSX and were trading at $7 per share on August 14.

4. November 15 declared a dividend of $125,000 ABC company uses two separate payable accounts for the classes of shareholders and pays only shareholders of record as of this date. The dividend will not be paid until 2022. There are no dividends in arrears.

5. December 5 declared and distributed a 20% common share stock dividend to be recorded at market value of $6.80 per share.