Exquisite Jewellery Limited reported the following summarized balance sheet at December 31, 2013: Assets Current assets .......................................................................................

Question:

Exquisite Jewellery Limited reported the following summarized balance sheet at December 31, 2013:

Assets

Current assets ....................................................................................... $33,400

Property and equipment, net .................................................................. 51,800

Total assets ........................................................................................... $85,200

Liabilities and Equity

Liabilities............................................................................................. $37,800

Shareholders' equity:

$0.50 cumulative preferred shares, 400 shares issued............................ 2,000

Common shares, 6,000 shares issued................................................... 23,400

Retained earnings................................................................................. 22,000

Total liabilities and equity................................................................. $85,200

During 2014, Exquisite completed these transactions that affected shareholders' equity:

Feb. 13 Issued 5,000 common shares for $4 per share.

June 7 Declared the regular cash dividend on the preferred shares.

July 24 Paid the cash dividend.

Aug. 9 Distributed a 10% stock dividend on the common shares. Market price of the common shares was $5 per share.

Nov. 20 Issued 200 common shares for $8 per share.

Requirements

1. Journalize Exquisite's transactions. Explanations are not required.

2. Report Exquisite Jewellery Limited's shareholders' equity at December 31, 2014. Net income for 2014 was $27,000.

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