The shareholders' equity of Corpus Christi Inc. (CCI) as of December 31, 2020 contains the following...

 

 

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The shareholders' equity of Corpus Christi Inc. (CCI) as of December 31, 2020 contains the following account titles and related details (in alphabetical order): Common shares, unlimited number authorized, 77,000 shares issued and outstanding Preferred shares, $3, cumulative, unlimited number authorized, 5,000 shares issued and outstanding Retained earnings Additional information: $1,001,000 $125,000 $413,000 CCI's board of directors declared and paid a $1 per share dividend to common shareholders on December 31, 2019. No dividends were declared in 2020. CCI completed the following transactions during 2021: March 1 Purchased 2,000 shares of its own common shares for $12 per share and retired them. April 1 Purchased an additional 5,000 shares of its own common shares for $15 and retired them. April 30 The Board of Directors declared and paid a $15,000 dividend. June 1 The board declared a 10% stock dividend when the market price of CCI's common shares was $20. July 1 Issued the stock relating to the stock dividend. On July 1, CCI's common shares had a market value of $25. Sept. 1 The board of directors announced a 2-for-1 stock split on the common shares when CCI's shares had a market price of $60. Dec. 31 Net income for the year was $500,000. Revenues were $900,000 and expenses were $400,000. Dec. 31 The board of directors had a meeting and declared a dividend of $1 per share on the common shares. Required (a) Prepare journal entries to record the above transactions/events. Show your work/calculations. Indicate the date in short form (Mar. 1, etc.). If no journal entry is required, state so and explain. (b) Prepare the shareholders' equity section of CCI's balance sheet, in good form, as of December 31, 2021. SHOW YOUR WORK - i.e., clearly indicate how you derive your numbers. The shareholders' equity of Corpus Christi Inc. (CCI) as of December 31, 2020 contains the following account titles and related details (in alphabetical order): Common shares, unlimited number authorized, 77,000 shares issued and outstanding Preferred shares, $3, cumulative, unlimited number authorized, 5,000 shares issued and outstanding Retained earnings Additional information: $1,001,000 $125,000 $413,000 CCI's board of directors declared and paid a $1 per share dividend to common shareholders on December 31, 2019. No dividends were declared in 2020. CCI completed the following transactions during 2021: March 1 Purchased 2,000 shares of its own common shares for $12 per share and retired them. April 1 Purchased an additional 5,000 shares of its own common shares for $15 and retired them. April 30 The Board of Directors declared and paid a $15,000 dividend. June 1 The board declared a 10% stock dividend when the market price of CCI's common shares was $20. July 1 Issued the stock relating to the stock dividend. On July 1, CCI's common shares had a market value of $25. Sept. 1 The board of directors announced a 2-for-1 stock split on the common shares when CCI's shares had a market price of $60. Dec. 31 Net income for the year was $500,000. Revenues were $900,000 and expenses were $400,000. Dec. 31 The board of directors had a meeting and declared a dividend of $1 per share on the common shares. Required (a) Prepare journal entries to record the above transactions/events. Show your work/calculations. Indicate the date in short form (Mar. 1, etc.). If no journal entry is required, state so and explain. (b) Prepare the shareholders' equity section of CCI's balance sheet, in good form, as of December 31, 2021. SHOW YOUR WORK - i.e., clearly indicate how you derive your numbers.

Answer rating: 100% (QA)

a Mar 1 Debit Treasury Stock 2000 x 12 24000 Credit Cash 24000 Apr 1 Debit Treasury S... View the full answer