Pace Oil & Gas Corp. began operations in 2018. Its balance sheet reported the following components of

Question:

Pace Oil & Gas Corp. began operations in 2018. Its balance sheet reported the following components of equity on December 31, 2018.

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?Pace Oil & Gas Corp.? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?Equity Section of the Balance Sheet? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?December 31, 2018Contributed capital:Preferred shares, $1.80 non-cumulative, unlimitedshares authorized; 25,000 shares issued and outstanding ................ $ 780,000Common shares, unlimited shares authorized;162,500 shares issued and outstanding ............................................... 1,755,000Total contributed capital ....................................................................... $2,535,000Retained earnings ....................................................................................... 681,000Total equity ............................................................................................. $3,216,000

The corporation completed these transactions during 2019 and 2020:

Required

1. Prepare journal entries to record the transactions and closings for 2019 and 2020.

2. Prepare the statement of changes in equity for the year ended December 31, 2020.

3. Prepare the equity section of the company?s balance sheet as of December 31, 2020.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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