Underwater Co. had the following equity account balances as at December 31, 2019: Contributed capital: Preferred...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Underwater Co. had the following equity account balances as at December 31, 2019: Contributed capital: Preferred shares, $3.70, cumulative, 56,000 authorized 3,200 shares issued and outstanding $40,500 Common shares, Unlimited shares authorized $399,500 $335,000 47,000 shares issued and outstanding Retained earnings In 2020, Underwater Co. had the following transactions: Repurchased and retired 12,000 common shares at $11.00 The board of directors declared the annual cash dividend of $200,000 Jan 1 April 15 Dividends were not declared for the year 2019. April 30 May 15 August 1 Date of record for the April 15 declared dividend Paid the dividends declared on April 15 11,000 of preferred shares were issued at $5.60 each Closed the dividend account along with the $55,000 credit balance in the income summary Dec 31 Required: a) Present all the required journal entries for the year 2020 based on the above information. Do not record dividends directly to retained earnings. If a journal entry is not required, state "No Journal Entry". b) Prepare the Statement of Changes in Equity for the year ended December 31, 2020 c) Prepare the Equity Section ofthe Balance Sheet at December 31, 2020 Underwater Co. had the following equity account balances as at December 31, 2019: Contributed capital: Preferred shares, $3.70, cumulative, 56,000 authorized 3,200 shares issued and outstanding $40,500 Common shares, Unlimited shares authorized $399,500 $335,000 47,000 shares issued and outstanding Retained earnings In 2020, Underwater Co. had the following transactions: Repurchased and retired 12,000 common shares at $11.00 The board of directors declared the annual cash dividend of $200,000 Jan 1 April 15 Dividends were not declared for the year 2019. April 30 May 15 August 1 Date of record for the April 15 declared dividend Paid the dividends declared on April 15 11,000 of preferred shares were issued at $5.60 each Closed the dividend account along with the $55,000 credit balance in the income summary Dec 31 Required: a) Present all the required journal entries for the year 2020 based on the above information. Do not record dividends directly to retained earnings. If a journal entry is not required, state "No Journal Entry". b) Prepare the Statement of Changes in Equity for the year ended December 31, 2020 c) Prepare the Equity Section ofthe Balance Sheet at December 31, 2020
Expert Answer:
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Posted Date:
Students also viewed these accounting questions
-
Kaye Biotech Inc. had the following equity account balances at December 31, 2013: Preferred shares, $2.45, non-cumulative, Authorized: 20,000 shares Issued and outstanding: 5,000 shares...
-
Venir Exchange Corp. had the following equity account balances at December 31, 2013: Preferred shares, $0.60, cumulative, Authorized: 100,000 shares Issued and outstanding: 45,000...
-
LR Enterprises Inc. had the following equity account balances at December 31, 2013: Preferred shares, $1.75, non-cumulative, Authorized: 100,000 shares Issued and outstanding: 45,000 shares...
-
On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows: a. Prepare a multiple-step income statement for the year...
-
Fill in the missing components of the following frequency distribution constructed for a sample size of 50: Cumulative Relative Relative Class Frequncy Frequency Frequency 7.85 _ < 0.12 0.48 - -- <...
-
Candy provided the following information at the end of her financial year on 30 September 203: $ Capital at 1 October 202 ................... 198,000 Fees received from clients ............... 82,300...
-
Today mutual funds are very popular investment options. However, since their origin in 1924, they have fallen in and out of favor. Write About It Research and write a one-page essay on the history of...
-
Answer each of the questions in the following unrelated situations. (a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $500,000,...
-
Use the following in-class exercise As the finance manager of a company, you are presented with the following project. The company is considering the purchase of a new piece of equipment which would...
-
1. a. How much did the materials cost per unit change between June and July? b. How much did the conversion cost per unit change between June and July? 2. Which is the optimal choice of material and...
-
Develop a Fixture Unit Table for a Toilet Room Fixture unittable to have cold water, hot water, and total water fixture unitsfor each Fixture Fixture Unit Table to have waste fixture units foreach...
-
Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost...
-
A person has a near-point of 33.5 cm. They view an object through a microscope with a relaxed eye. The focal length of the objective lens is 1.5 cm and the distance between the two lenses if 15.8 cm....
-
Analyze the different conflict management styles used by employees. Include where each style might be appropriate through actual work examples.
-
Do research to identify the embedded operating systems used in BMW, Chevrolet, Chrysler, Ford, Honda, Mercedes Benz, Nissan, and Toyota automobiles. Use your creativity with this work. You are...
-
However, the skilled-based approach has potential challenges to use new skills effectively. Can you share more around that? I feel that both plans have benefits, but it depends on the organization,...
-
Goods are shipped f.o.b. from the United States on 1 May 2020. The cost of the goods is US$1 500 000. The amount has not been paid at period end, 30 June 2020. Exchange rates are as follows: 1 May...
-
For the following exercises, find the area of the triangle. Round to the nearest hundredth. 22 50 36
-
Refer to the financial statements in Appendix II for WestJet and calculate the percentage change in total revenues from 2016 to 2017.
-
Startup companies such as the Farmery, highlighted in the chapter-opening vignette, often have challenges raising sufficient capital. From the issuing company perspective, what are the advantages and...
-
Where possible, calculate percentage of increase and decrease for the following accounts of Craft Brewery Ltd.: 2020 2019 Current non-strategic investments Accounts receivable. Notes payable....
-
Brown, Cosden & Co., a medium-sized public accounting firm, was engaged to audit Joslin Supply Inc. Several staff were involved in the audit, all of whom had attended the firm's in-house training...
-
Jan Sharpe recently joined the public accounting firm of Spark, Watts, and Wilcox. She quickly established a repu tation for thoroughness and a steadfast dedication to follow ing prescribed auditing...
-
In confirming accounts receivable on December 31, 2001, the auditor found 15 discrepancies between the cus tomer s records and the recorded amounts in the subsidiary ledger. A copy of all...
Study smarter with the SolutionInn App