Waipahu Corporation was organized January 1, 2021 and chose a December 31 fiscal year end. One...

Transcribed Image Text:

Waipahu Corporation was organized January 1, 2021 and chose a December 31 fiscal year end. One year later (at the beginning of 2022), their shareholders' equity was as follows: Preferred shares, $4.80, non-cumulative,100,000 shares authorized, 7,000 shares issued and outstanding Common stock, unlimited shares authorized, 30,000 shares issued and outstanding Retained earnings Total shareholders' equity **No dividends were declared in 2022. $ 420,000 600,000 500.000 $1.520.000 Transactions relating to shareholders' equity accounts during 2022 are as follows: March 1 Purchased and retired 2,500 common shares for $17.00 each cash. June 1 Declared a 20% common stock dividend to shareholders of record on June 15, to be distributed June 30. The Board of Directors decided to capitalize the dividend at the current market price of Novel's shares, which was $33 at this time. June 15 Date of record. At this time, market value of the shares was $32. June 30 Distributed the stock dividend declared June 1. Market value of shares was $36. Dec 1 Declared cash dividends on the preferred shares, and a cash dividend of $0.85 per common share, payable on January 10, 2022 to shareholders of record on December 20. Dec 20 Date of record. Dec 31 Net income for the year was $195,000. Closed the Income Summary account. REQUIRED: 1. IN GOOD FORM, prepare any required general journal entries to record the 2022 transactions. Show any mathematical calculations. IF YOU THINK A JOURNAL ENTRY IS NOT REQUIRED-WRITE THE DATE AND "No Entry Required." 2. Prepare a Statement of Retained Earnings for 2022. 3. Prepare the Shareholders' Equity section of the December 31, 2022 Balance Sheet. 4. Calculate earnings per share for 2022. Waipahu Corporation was organized January 1, 2021 and chose a December 31 fiscal year end. One year later (at the beginning of 2022), their shareholders' equity was as follows: Preferred shares, $4.80, non-cumulative,100,000 shares authorized, 7,000 shares issued and outstanding Common stock, unlimited shares authorized, 30,000 shares issued and outstanding Retained earnings Total shareholders' equity **No dividends were declared in 2022. $ 420,000 600,000 500.000 $1.520.000 Transactions relating to shareholders' equity accounts during 2022 are as follows: March 1 Purchased and retired 2,500 common shares for $17.00 each cash. June 1 Declared a 20% common stock dividend to shareholders of record on June 15, to be distributed June 30. The Board of Directors decided to capitalize the dividend at the current market price of Novel's shares, which was $33 at this time. June 15 Date of record. At this time, market value of the shares was $32. June 30 Distributed the stock dividend declared June 1. Market value of shares was $36. Dec 1 Declared cash dividends on the preferred shares, and a cash dividend of $0.85 per common share, payable on January 10, 2022 to shareholders of record on December 20. Dec 20 Date of record. Dec 31 Net income for the year was $195,000. Closed the Income Summary account. REQUIRED: 1. IN GOOD FORM, prepare any required general journal entries to record the 2022 transactions. Show any mathematical calculations. IF YOU THINK A JOURNAL ENTRY IS NOT REQUIRED-WRITE THE DATE AND "No Entry Required." 2. Prepare a Statement of Retained Earnings for 2022. 3. Prepare the Shareholders' Equity section of the December 31, 2022 Balance Sheet. 4. Calculate earnings per share for 2022.