Underwater Co. had the following equity account balances as at December 31, 2019: Contributed capital: Preferred...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Underwater Co. had the following equity account balances as at December 31, 2019: Contributed capital: Preferred shares, $3.70, cumulative, 56,000 authorized 3,200 shares issued and outstanding $40,500 Common shares, Unlimited shares authorized $399,500 $335,000 47,000 shares issued and outstanding Retained earnings In 2020, Underwater Co. had the following transactions: Repurchased and retired 12,000 common shares at $11.00 The board of directors declared the annual cash dividend of $200,000 Jan 1 April 15 Dividends were not declared for the year 2019. April 30 May 15 August 1 Date of record for the April 15 declared dividend Paid the dividends declared on April 15 11,000 of preferred shares were issued at $5.60 each Closed the dividend account along with the $55,000 credit balance in the income summary Dec 31 Required: a) Present all the required journal entries for the year 2020 based on the above information. Do not record dividends directly to retained earnings. If a journal entry is not required, state "No Journal Entry". b) Prepare the Statement of Changes in Equity for the year ended December 31, 2020 c) Prepare the Equity Section ofthe Balance Sheet at December 31, 2020 Underwater Co. had the following equity account balances as at December 31, 2019: Contributed capital: Preferred shares, $3.70, cumulative, 56,000 authorized 3,200 shares issued and outstanding $40,500 Common shares, Unlimited shares authorized $399,500 $335,000 47,000 shares issued and outstanding Retained earnings In 2020, Underwater Co. had the following transactions: Repurchased and retired 12,000 common shares at $11.00 The board of directors declared the annual cash dividend of $200,000 Jan 1 April 15 Dividends were not declared for the year 2019. April 30 May 15 August 1 Date of record for the April 15 declared dividend Paid the dividends declared on April 15 11,000 of preferred shares were issued at $5.60 each Closed the dividend account along with the $55,000 credit balance in the income summary Dec 31 Required: a) Present all the required journal entries for the year 2020 based on the above information. Do not record dividends directly to retained earnings. If a journal entry is not required, state "No Journal Entry". b) Prepare the Statement of Changes in Equity for the year ended December 31, 2020 c) Prepare the Equity Section ofthe Balance Sheet at December 31, 2020
Expert Answer:
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Posted Date:
Students also viewed these accounting questions
-
Kaye Biotech Inc. had the following equity account balances at December 31, 2013: Preferred shares, $2.45, non-cumulative, Authorized: 20,000 shares Issued and outstanding: 5,000 shares...
-
Venir Exchange Corp. had the following equity account balances at December 31, 2013: Preferred shares, $0.60, cumulative, Authorized: 100,000 shares Issued and outstanding: 45,000...
-
LR Enterprises Inc. had the following equity account balances at December 31, 2013: Preferred shares, $1.75, non-cumulative, Authorized: 100,000 shares Issued and outstanding: 45,000 shares...
-
On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows: a. Prepare a multiple-step income statement for the year...
-
Compare and contrast the activated sludge process and the trickling filter system used in secondary treatment of wastewater. Discuss.
-
A trial balance was extracted from the books of V Baker, and it was found that the debit side exceeded the credit side by 40. This amount was entered in the suspense account. The following errors...
-
An ideal gas is to flow isentropically from a large tank where the air is maintained at a temperature and pressure of \(59^{\circ} \mathrm{F}\) and \(80 \mathrm{psia}\) to standard atmospheric...
-
Given the following project network, baseline, and status information, develop status reports for periods 2, 4, 6, 8 and complete the performance indexes table. Calculate the EACf and the VACf. Based...
-
Idenfity FIVE (5) characteristics of quality product and FIVE (5) characteristics of quality service. You may use car as an example of a product and hotel services as example of service. (20 marks)...
-
A storage tank is connected to a pond (at atmospheric pressure!) by a length of 3-in pipe and two gate valves. From previous operating experience, it has been found that when the tank is at a...
-
The expected possible outcomes for Roxy Stock are below. What is the expected return? (Show your work. Label %. Two decimal places required. Highllight or bold your answer.) What is the expected...
-
Discuss, using examples, how this cost volume profit analysis would work in a governmental organization?
-
It is foxes' policy to charge accounting costs to administrations expenses what does it means?
-
Monty appreciates the company discount he is given, and he believes in what the company is selling. What influence is having the greatest effect on Monty?
-
Explain these features of legislation related to reporting requirements: 1. Mandatory reporting 2. Financial statements 3. Accounting standards 4. Frequency of reporting
-
What is the name of the spiral shape used throughout the textbook to signify new beginnings, growth, strength, harmony, and peace?
-
XYZ Ltd manufactures two products, Papa and Quebec. Monthly data relating to production and sales are as follows: Direct material cost per unit Direct labour hour per unit Direct labour cost per unit...
-
On October 31 Juanita Ortega, owner of Outback Guide Service, received a bank statement dated October 30. Juanita found the following: 1. The checkbook has a balance of $2,551.34. 2. The bank...
-
Refer to the financial statements in Appendix II for WestJet and calculate the percentage change in total revenues from 2016 to 2017.
-
Startup companies such as the Farmery, highlighted in the chapter-opening vignette, often have challenges raising sufficient capital. From the issuing company perspective, what are the advantages and...
-
Where possible, calculate percentage of increase and decrease for the following accounts of Craft Brewery Ltd.: 2020 2019 Current non-strategic investments Accounts receivable. Notes payable....
-
Explain how the Feds doubling of the monetarybase and government bailouts might influencethe short-run and long-run Phillips curves.Will the influence come fromchanges in the expected inflation rate,...
-
Suppose because of a recession, most state governments experience reductions in tax revenues, and respond by reducing their expenditures and increasing their taxes to keep their state budgets in...
-
Explain how large scale structural change mightinfluence the short-run and long-run Phillips curves.Will the influencecome from changes in the expected inflation rate,the natural unemployment rate,...
Study smarter with the SolutionInn App