Question

Shohei Inc.’s shareholders’ equity on December 31, 2013 was as follows:
Shareholders’ Equity
Share Capital:
Preferred Shares, $0.75 accumulated deferred dividends,
500,000 shares authorized, 100,000 issued and outstanding ..... $1,000,000
Common Shares, unlimited number of shares authorized,
250,000 shares issued and outstanding ............. $4,000,000
Retained Earnings ................... 750,000
Total Shareholders’ Equity ................ $5,750,000
During 2014, the following transactions occurred.
Jan 2 10,000 preferred shares were issued at $22.00 per share.
Feb 1 12,000 common shares were issued in exchange for a building with a fair value of $300,000.
Nov 25 Declared preferred dividends to be paid on December 23.
Dec 27 Declared 5% common stock dividend, when the marketplace was $25,2to be distributed on January 30, 2015 Dec 31 Net income for the year was $520,000.
Requirements
1. Journalize the above transactions.
2. Prepare the shareholders’ equity section of the Shohei Inc. balance sheet as of December 31, 2014.


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  • CreatedJuly 08, 2015
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