Advanced Technologies Inc. reported the following information related to its shareholders' equity on January 1: Common shares,
Question:
Advanced Technologies Inc. reported the following information related to its shareholders' equity on January 1:
Common shares, 1,000,000 authorized, 500,000 shares issued..............$1,500,000
Contributed surplus-reacquisition of common shares............................15,000
Retained earnings.....................................................................720,000
During the year, the following transactions related to common shares occurred in the order listed:
1. Issued 35,000 shares at $4.20 per share.
2. Reacquired 10,000 shares at $3.00 per share.
3. Issued 5,000 shares at $4.50 per share.
4. Reacquired 18,000 shares at $4 per share.
5. Reacquired 75,000 shares at $3 per share.
Instructions
(a) Calculate the number of shares authorized and issued at the end of the year.
(b) Determine the ending balances in each of the following accounts: Common Shares; Contributed Surplus-Reacquisition of Common Shares; and Retained Earnings.
Taking It Further
Why is it important to report the number of shares issued? The number authorized?
Step by Step Answer:
a Shares authorized 1000000 Shares issued 437000 b Common shares 1351330 Contributed Surplus x reacquisition of Common shares 6750 Retained earnings 719420 Calculations Common shares a Number of shares b Average issue price a b Cont surplus x reacq ...View the full answer
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
