1. Prepare journal entries to record the transactions and closing for 2020 (assume the retirements were the first ever recorded by Zen Aerospace). Assume share dividends and cash dividends account is used when dividends are declared.
2. Prepare the statement of changes in equity for the year ended December 31, 2020.

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Zen Aerospace Corporation reported the following equity account balances on December 31, 2019: Preferred shares, $3.60 cumulative, unlimited shares authorized Common shares, unlimited shares authorized, 20,50e shares issued and outstanding Retained earnings 24 565, 800 325,000 In 2020, the company had the following transactions affecting shareholders and the shareholders' equity accounts: 1 Purchased and retired 2,100 common shares at $36 per share. 14 The directors declared an 8% share dividend distributable on February 5 to the January 30 shareholders of record. The shares were trading at $45.70 per share. 30 Date of record regarding the 8% share dividend. 5 Date of distribution regarding the 8% share dividend. 6 Sold 5,10e preferred shares at $61 per share. Jan. Feb. July Sept. 5 The directors declared a total cash dividend of $48,000 payable on October 5 to the September 20 shareholders of record. Oct. 5 The cash dividend declared on September 5 was paid. Dec. 31 Closed the $466,600 credit balance in the Profit Summary account to Retained Earnings. 31 Closed the dividend accounts. Zen Aerospace Corporation reported the following equity account balances on December 31, 2019: Preferred shares, $3.60 cumulative, unlimited shares authorized Common shares, unlimited shares authorized, 20,50e shares issued and outstanding Retained earnings 24 565, 800 325,000 In 2020, the company had the following transactions affecting shareholders and the shareholders' equity accounts: 1 Purchased and retired 2,100 common shares at $36 per share. 14 The directors declared an 8% share dividend distributable on February 5 to the January 30 shareholders of record. The shares were trading at $45.70 per share. 30 Date of record regarding the 8% share dividend. 5 Date of distribution regarding the 8% share dividend. 6 Sold 5,10e preferred shares at $61 per share. Jan. Feb. July Sept. 5 The directors declared a total cash dividend of $48,000 payable on October 5 to the September 20 shareholders of record. Oct. 5 The cash dividend declared on September 5 was paid. Dec. 31 Closed the $466,600 credit balance in the Profit Summary account to Retained Earnings. 31 Closed the dividend accounts.

Answer rating: 100% (QA)

Answer Solution Date General Journal Debit Credit 1Jan Common shares 2100276 57960 Retained earnings ... View the full answer