Comp You Solutions Corp. is a national information technology consulting firm. The following selected accounts appear in the ledger of Comp You Solutions Corp. on April 1, 2015, the beginning of the current year:
$1.50 preferred shares (500,000 authorized,
56,000 shares issued and outstanding)...................................... $2,550,000
Common shares (unlimited authorized,
550,000 shares issued and outstanding).................................... 8,356,500
Retained earnings...........................................................................4,358,000
Comp You Solutions Corp. uses dividend accounts. During the year, the corporation completed the following transactions that affected its shareholders' equity.
a. Sold 2,000 preferred shares at $52 per share.
b. Declared semiannual cash dividends of $0.75 per preferred share and $0.50 per
common share.
c. Issued 100,000 common shares at $12 per share, receiving cash. d. Paid the dividend declared in (b)
e. Declared a common share dividend of 5% when the market price of the common share was trading at $12.50.
f. Issued the share dividend.
g. Declared semiannual cash dividends of $0.75 per preferred share and $0.65 per
common share.
h. Recorded closing entries. The net income for the year was $3,745,000.
Instructions
1. Journalize the entries to record the transactions. Identify each entry by letter.
2. Prepare a statement of changes in equity for the year ended March 31, 2016.
3. Prepare the Shareholders' Equity section of the statement of financial position for Comp You Solutions Corp. as at March 31, 2016.
4. Calculate the basic earnings per share for the year ended March 31, 2016, assuming a weighted average number of common shares of 673,750.