Sudan Enterprises Inc. reported the following shareholder's equity at December 31, 2016: Contributed Capital Preferred shares,...

Transcribed Image Text:

Sudan Enterprises Inc. reported the following shareholder's equity at December 31, 2016: Contributed Capital Preferred shares, $1, no par value, 100,000 shares authorized, cumulative, callable at $107 plus dividends in arrears; issued and outstanding, 20,000 shares $2,040,000 Common shares, no par, 100,000 shares authorized, 80,000 issued and outstanding 640,000 Contributed surplus (retirement of common shares) 120,000 Retained earnings 1,600,000 The following transactions took place in 2017: Jan 20 Redeemed 1,000 preferred shares at the call price. There were no dividends in arrears. Jan 28 Declared $100,000 in dividends. Use separate accounts for each class of dividends. Feb 28 Retired 8,000 common shares at $12 per share. Mar 2 Declared and distributed a 3% common stock dividend. The market value of the shares at that time was $11.50. Instructions Prepare journal entries for the 2017 transactions. Sudan Enterprises Inc. reported the following shareholder's equity at December 31, 2016: Contributed Capital Preferred shares, $1, no par value, 100,000 shares authorized, cumulative, callable at $107 plus dividends in arrears; issued and outstanding, 20,000 shares $2,040,000 Common shares, no par, 100,000 shares authorized, 80,000 issued and outstanding 640,000 Contributed surplus (retirement of common shares) 120,000 Retained earnings 1,600,000 The following transactions took place in 2017: Jan 20 Redeemed 1,000 preferred shares at the call price. There were no dividends in arrears. Jan 28 Declared $100,000 in dividends. Use separate accounts for each class of dividends. Feb 28 Retired 8,000 common shares at $12 per share. Mar 2 Declared and distributed a 3% common stock dividend. The market value of the shares at that time was $11.50. Instructions Prepare journal entries for the 2017 transactions.

Answer rating: 100% (QA)

Sudan Enterprises Inc Journal entries Date Debit Cre... View the full answer