The equity section from the December 31, 2017 and 2018, balance sheets of Westburne Corporation appeared as
Question:
2018 | 2017 | |
Contributed capital: | ||
Common shares, 50,000 shares authorized; 25,320 and | ||
23,800 shares issued and outstanding, respectively | $557,040 | $476,000 |
Retained earnings | 572,000 | 460,000 |
The following transactions occurred during 2018 (assume the retirements were the first ever recorded by Westburne):
Jan. 5 | A $1.30 per share cash dividend was declared, and the date of record was five days later. |
Mar. 20 | 2,700 common shares were repurchased and retired at $20.00 per share. |
Apr. 5 | A $1.30 per share cash dividend was declared, and the date of record was five days later. |
July 5 | A $1.30 per share cash dividend was declared, and the date of record was five days later. |
July 31 | A 20% share dividend was declared when the market value was $32.00 per share. |
Aug. 14 | The share dividend was issued. |
Oct. 5 | A $1.30 per share cash dividend was declared, and the date of record was five days later. |
Jan 5. 23,800 Apr. 5 21,100 July. 5 21,100 Oct. 5 25,320 |
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann