Burlington Clothes was incorporated on October 1 , 2 0 2 1 . The articles of incorporation
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Question:
Burlington Clothes was incorporated on October The articles of incorporation indicated the company was authorized to issue shares of nopar value common shares and $ preferred shares that are cumulative and participating in distributions more than of a dividend rate on the common shares. The companys yearend is September The following information relates to the companys shareholders equity account.
For shares with no par value which means most shares in Canada the assigned value is equal to the average pershare amount in the account for that class of shares at the transaction date.
common shares issued for cash on October at $ per share.
$ preferred shares were issued on October at $ per share.
common shares exchanged on Dec for land in the downtown core. The land had originally cost the seller $ and had an estimated fair value of $ on Dec when Burlingtons share was selling for $
common shares issued on June ; the shares had been subscribed for $ per share on October
October : subscriptions were received for common shares at $ per share. The first installment of $ was received on this date and the final installment was paid on September
November : the company purchased of its common shares at $ per share and restored these shares to the status of authorized but unissued. average divide total price amount of current shares
December : the company declared a stock dividend for shareholders of record on January The company was short on cash and therefore could not pay a cash dividend. The companys shares were selling at $ per share on December
March : the company sold common shares for $
Dividends:
Burlington did not declare any dividends until September At that date total dividends of $ were declared and paid.
The company incurred the following profits loss since incorporation:
Required:
a Determine the number of dividends received by preferred and common shareholders from the September declaration.
b Prepare the journal entries for fiscal year October September Hint: Journal entries before October are not required; however, you will still need to calculate required account balances totals using earlier information. You must show your work use excel.
c Prepare the statement of changes in equity and the shareholders equity section of the balance sheet for September
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
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