Question $1$

On December $31,2023,$ Wildhorse Treats Limited reported $38,000$ common shares issued and a balance in the Common Shares account of $$234,840.$ On April $5,2024,$ it reacquired $7,500$ of these shares. This is the first time Wildhorse Treats has reacquired any of its shares.

$($a$)$

Record the reacquisition of the shares assuming the company paid $$42,000$ to reacquire the shares. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries. Round average per share amount to $2$ decimal places, eg$.15\mathrm{.}25$ and final answers to $0$ decimal places, eg$.5,125$

Question $2$

On March $1,$ Sheridan Ltd$.$ had $417,000$ common shares issued and the balance in its Common Shares account was $$625,500.$ The company declared a $5\%$ stock dividend to shareholders of record on March $14,$ to be distributed on March $31.$ The fair value per share was $$5$ on March $1,$ $$4\mathrm{.}85$ on March $14,$ and $$5\mathrm{.}35$ on March $31.$

Prepare the entries on the appropriate dates to record the stock dividend. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit

Question $3$

Sandhill Rental Corporation had the following balances in its shareholders' equity accounts at January $1,2024$:

Accumulated other comprehensive income $($loss$)$

Contributed surplus$-$reacquisition of common shares

Retained earnings

Common shares $(36,000$ shares$)$

$$(27,000)$

$534,000$

$1,540,000$

$900,000$

Sandhill had the following transactions and events during $2024$:

Feb. $2$ Repurchased $800$ shares for $$35,200.$

Apr. $17$

Declared and paid cash dividends of $$69,000.$

Oct. $29$

Issued $1,600$ shares for $$97,000$ cash.

Dec. $31$ Reported comprehensive income for the year of $$421,000,$ which included other comprehensive income of $$46,000.$

$($Part A$)$ Prepare journal entries to record the transactions that took place during $2024.($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.$)$

Date

Account Titles

Debit

Credit

Feb. $2$

Contributed Surplus $-$ Reacquisition of Common Shares

$15,200$

Common Shares

$20,000$

Cash

$35,200$

Apr. $17$

V

Cash Dividends $-$ Common

$69,000$

Cash

$69,000$

Oct. $29$

Cash

$97,000$dr

Common Shares

$97,000$ Cr

$($Part $3)$ Prepare a statement of changes in shareholders' equity at December $31,2024.($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

SANDHILL RENTAL CORPORATION

Statement of Changes in Shareholders' Equity

Common

Shares

Contributed Surplus$-$Reacquisition of Common Shares

Retained Earnings

$$ccumulated other comprehensive income $($loss$)$

$($a$)$

Record the reacquisition of the shares assuming the company paid $$42,000$ to reacquire the shares. $($Credit account titles are

automatically indented when the amount is entered. Do not indent manually, If no entry is required, select $"$No Entry" for the account tittes

and enter $0$ for the amounts. List all debit entries before credit entries. Round average per share amount to $2$ decimal places, es$.15\mathrm{.}25$ and

final answers to $0$ decimal places, e$.$g$.5,125.)$

Date Account Titles and Explanation

Debit

Credit

April $5$