Pine Inc. (Pine) had the following shareholders' equity account balances on January 1, 2021: Common shares,...

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Pine Inc. ("Pine") had the following shareholders' equity account balances on January 1, 2021: Common shares, unlimited authorization, 210,000 shares issued Preferred shares - $2.50 cumulative, 100,000 shares authorized, 15,000 issued Contributed Surplus (Credit balance) Retained earnings All shares were issued between 2017 and 2019. The last time the company declared and paid any dividends was December 31, 2019. All preferred dividends were satisfied on that date. $1,680,000 $562,500 $ 30,000 $1,200,000 The contributed surplus arose from past common share transactions. The following transactions took place during 2021: 1. On January 1, the company issued 25,000 common shares and received $225,000. 2. On March 1, the company acquired a piece of land in exchange for common shares. The land had a fair value of 200,000. The company issued 20,000 common shares. 3. On June 30, the company declared and distributed a common stock dividend of 5 % The market value on June 30th was determined to be $11.00 per share, 4. On August 1", the company bought back and cancelled 13,000 of its common shares for $10.50. per share. 5. On September 1", the company issued 20,000 common shares and 5,000 preferred shares for cash. The cash proceeds received totaled $480,000. The fair value of the common shares was deemed to be $14.00 per share on September 1ª. 6. On November 1", the company bought back 10,000 shares from one of the original shareholders and the founder of the company. The company paid $17.00 per share. 7. On December 1", the company's board of directors declared cash dividends on both the preferred and common shares. The total amount of cash allocated for dividend distribution was $400,000. 8. On December 20th, the cash dividend was paid to the shareholders. 9. Net income for the year was $650,000. Required: 1 Prepare any journal entries for the above noted transactions/events for 2021. While no explanations are required, calculations must be provided. If no entry is required, state so and explain why. (20 marks) 2. Provide the balance at December 31, 2021 for the following accounts: (4 marks) a. Common shares b. Preferred shares c. Retained earnings d. Contributed surplus Pine Inc. ("Pine") had the following shareholders' equity account balances on January 1, 2021: Common shares, unlimited authorization, 210,000 shares issued Preferred shares - $2.50 cumulative, 100,000 shares authorized, 15,000 issued Contributed Surplus (Credit balance) Retained earnings All shares were issued between 2017 and 2019. The last time the company declared and paid any dividends was December 31, 2019. All preferred dividends were satisfied on that date. $1,680,000 $562,500 $ 30,000 $1,200,000 The contributed surplus arose from past common share transactions. The following transactions took place during 2021: 1. On January 1, the company issued 25,000 common shares and received $225,000. 2. On March 1, the company acquired a piece of land in exchange for common shares. The land had a fair value of 200,000. The company issued 20,000 common shares. 3. On June 30, the company declared and distributed a common stock dividend of 5 % The market value on June 30th was determined to be $11.00 per share, 4. On August 1", the company bought back and cancelled 13,000 of its common shares for $10.50. per share. 5. On September 1", the company issued 20,000 common shares and 5,000 preferred shares for cash. The cash proceeds received totaled $480,000. The fair value of the common shares was deemed to be $14.00 per share on September 1ª. 6. On November 1", the company bought back 10,000 shares from one of the original shareholders and the founder of the company. The company paid $17.00 per share. 7. On December 1", the company's board of directors declared cash dividends on both the preferred and common shares. The total amount of cash allocated for dividend distribution was $400,000. 8. On December 20th, the cash dividend was paid to the shareholders. 9. Net income for the year was $650,000. Required: 1 Prepare any journal entries for the above noted transactions/events for 2021. While no explanations are required, calculations must be provided. If no entry is required, state so and explain why. (20 marks) 2. Provide the balance at December 31, 2021 for the following accounts: (4 marks) a. Common shares b. Preferred shares c. Retained earnings d. Contributed surplus

Answer rating: 100% (QA)

1 Journal Entries for 2021 a On January 1 Common shares 25000 shares x 225000 Dr 5625000 Cash Cr 225000 Contributed surplus Cr 5400000 Date Account De... View the full answer