The shareholders' equity section of Trane Inc. as at December 31, 20x6 is as follows: $24,000,000...

  

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The shareholders' equity section of Trane Inc. as at December 31, 20x6 is as follows: $24,000,000 Common shares, 3,500,000 shares outstanding Contributed surplus - Common Share Repurchases Retained Earnings 280,000 7,900,000 The following transactions took place during 20x7: Jan 2 Jan 26 Mar 31 Apr 15 May 31 Jun 30 Oct 31 Nov 12 Employees subscribed for 40,000 shares at $11 per share. A deposit of 10% was received on this date. Issued 300,000 shares for total cash proceeds of $3,600,000. Employees holding 38,000 share subscriptions submitted their 30% deposit on the share subscription plan. The 2,000 shares subscribed were cancelled due to employees leaving the company. Their deposits on the share subscription plan was refunded. Repurchased 50,000 common shares for $15 per share. The board of directors approved a 2:1 stock split. Issued 200,000 shares for total cash proceeds of $1,600,000. Employees holding 37,000 share subscriptions submitted their second 30% deposit on the share subscription plan. The 1,000 shares subscribed were cancelled due to employees leaving the company. Their deposits on the share subscription plan was refunded. Repurchased 80,000 common shares for $11 per share. Dec 15 Dec 18 a. Employees holding 35,500 share subscriptions submitted their final deposit on the share subscription plan. The 1,500 shares subscribed were cancelled due to employees leaving the company. Their deposits on the share subscription plan was refunded. A total of 71,000 common shares were issued on this date. Required - Prepare all journal entries to record the above. Use 4 decimals when calculating per share book values. Prepare a Statement of changes in shareholders' equity for the year ended December 31, 20x7. The net income for the year was $2,300,000. b. The board of directors authorized a $0.25 common share dividend to shareholders of record on December 31, The dividend is payable January 15, 20x8. The shareholders' equity section of Trane Inc. as at December 31, 20x6 is as follows: $24,000,000 Common shares, 3,500,000 shares outstanding Contributed surplus - Common Share Repurchases Retained Earnings 280,000 7,900,000 The following transactions took place during 20x7: Jan 2 Jan 26 Mar 31 Apr 15 May 31 Jun 30 Oct 31 Nov 12 Employees subscribed for 40,000 shares at $11 per share. A deposit of 10% was received on this date. Issued 300,000 shares for total cash proceeds of $3,600,000. Employees holding 38,000 share subscriptions submitted their 30% deposit on the share subscription plan. The 2,000 shares subscribed were cancelled due to employees leaving the company. Their deposits on the share subscription plan was refunded. Repurchased 50,000 common shares for $15 per share. The board of directors approved a 2:1 stock split. Issued 200,000 shares for total cash proceeds of $1,600,000. Employees holding 37,000 share subscriptions submitted their second 30% deposit on the share subscription plan. The 1,000 shares subscribed were cancelled due to employees leaving the company. Their deposits on the share subscription plan was refunded. Repurchased 80,000 common shares for $11 per share. Dec 15 Dec 18 a. Employees holding 35,500 share subscriptions submitted their final deposit on the share subscription plan. The 1,500 shares subscribed were cancelled due to employees leaving the company. Their deposits on the share subscription plan was refunded. A total of 71,000 common shares were issued on this date. Required - Prepare all journal entries to record the above. Use 4 decimals when calculating per share book values. Prepare a Statement of changes in shareholders' equity for the year ended December 31, 20x7. The net income for the year was $2,300,000. b. The board of directors authorized a $0.25 common share dividend to shareholders of record on December 31, The dividend is payable January 15, 20x8.

Answer rating: 100% (QA)

Answer A Jan 2 Employees subscribed for 40000 shares at 11 per share A deposit of 10 was received on this date Cash 11000 Share Subscription Receivabl... View the full answer