The December 31, 2023 shareholders' equity section of Kamala Co.'s balance sheet is shown below: $25,000...

 

Transcribed Image Text:

The December 31, 2023 shareholders' equity section of Kamala Co.'s balance sheet is shown below: $25,000 Preferred shares, $2 cumulative, 1,000 issued Common shares, 10,000 issued 150,000 Retained earnings 200,000 Total shareholders' equity $375,000 The following equity transactions occurred during 2024: Issued 1,000 common shares for a piece of land with a fair value of $160,000. Issued 100 preferred shares for $3000 cash. Jan 15 Mar 21 August 1 August 10 Declared the regular cash dividend on preferred shares. Paid the regular cash dividend on preferred shares. November 8 Declared and issued a 10% stock dividend on common shares at a time when the market price was $18 per share. Required: a.) Journalize the transactions above. b.) Assuming net income for the year was $50,000, prepare the statement of changes of shareholders' equity for the year ended December 31, 2024. The December 31, 2023 shareholders' equity section of Kamala Co.'s balance sheet is shown below: $25,000 Preferred shares, $2 cumulative, 1,000 issued Common shares, 10,000 issued 150,000 Retained earnings 200,000 Total shareholders' equity $375,000 The following equity transactions occurred during 2024: Issued 1,000 common shares for a piece of land with a fair value of $160,000. Issued 100 preferred shares for $3000 cash. Jan 15 Mar 21 August 1 August 10 Declared the regular cash dividend on preferred shares. Paid the regular cash dividend on preferred shares. November 8 Declared and issued a 10% stock dividend on common shares at a time when the market price was $18 per share. Required: a.) Journalize the transactions above. b.) Assuming net income for the year was $50,000, prepare the statement of changes of shareholders' equity for the year ended December 31, 2024.

Answer rating: 100% (QA)

a Journal Entry Date Accounts Description Debit Credit Jan15 Land 160000 Common Shares 160000 To rec... View the full answer