Instructo Inc. showed the following shareholders' equity account balances at December 31, 2019: Common shares, unlimited...
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Instructo Inc. showed the following shareholders' equity account balances at December 31, 2019: Common shares, unlimited authorized shares, 480,000 shares issued and outstanding $6,800,000 Retained earnings 3,600,000 During 2020, the following selected transactions occurred: Apr. 1 Repurchased and retired 200,000 common shares at $9.20 per share June 1 Repurchased and retired 125,000 common shares at $10.75 per share Aug 1 Issued 50,000 common shares at $12 per share Nov. 1 Dec. 1 Repurchased and retired 100,000 common shares at $20.00 per share Declared a 10% share dividend to shareholders of record on December 10, distributable December 20. The market prices of the shares on December 1, December 10, and December 20 were $7.50, $6.80, and $7.20 respectively. Distributed the share dividend declared December 1. 20 31 Closed the credit balance of $1,620,000 in the Income Summary account. Required: a. Journalize the transactions above. b. Prepare the shareholders' equity section at December 31, 2020. Instructo Inc. showed the following shareholders' equity account balances at December 31, 2019: Common shares, unlimited authorized shares, 480,000 shares issued and outstanding $6,800,000 Retained earnings 3,600,000 During 2020, the following selected transactions occurred: Apr. 1 Repurchased and retired 200,000 common shares at $9.20 per share June 1 Repurchased and retired 125,000 common shares at $10.75 per share Aug 1 Issued 50,000 common shares at $12 per share Nov. 1 Dec. 1 Repurchased and retired 100,000 common shares at $20.00 per share Declared a 10% share dividend to shareholders of record on December 10, distributable December 20. The market prices of the shares on December 1, December 10, and December 20 were $7.50, $6.80, and $7.20 respectively. Distributed the share dividend declared December 1. 20 31 Closed the credit balance of $1,620,000 in the Income Summary account. Required: a. Journalize the transactions above. b. Prepare the shareholders' equity section at December 31, 2020.
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Instructo Inc on 31122019 Common shares of 480000 shares 6800000 Retained earnings 3600000 Common sh... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
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