The following shareholders' equity accounts are reported by Branch Inc. on January 1, 2018: Preferred shares ($4
Question:
The following shareholders' equity accounts are reported by Branch Inc. on January 1, 2018:
Preferred shares ($4 noncumulative, 35,000 issued)...............................$350,000
Common shares (150,000 issued)...........................................................2,400,000
Retained earnings...................................................................................1,276,000
Accumulated other comprehensive income.................................................15,000
The following selected transactions, given in chronological order, occurred during the year:
1. Reacquired and retired 20,000 common shares for $26 per share.
2. Issued 10,000 common shares for $30 per share.
3. Issued 500 preferred shares for $100 per share.
4. Issued 1,000 common shares in exchange for land. The fair value of the shares was $30 per share. The current value of the land was $29,000.
5. Declared and paid the preferred shareholders a $2 per share cash dividend.
6. Determined that the company had other comprehensive income of $5,000 from the revaluation of land.
Instructions
For each of the above transactions, indicate its impact on the items in the table below. Indicate if the item will increase (+) or decrease (-), and by how much, or if there will be no effect (NE). The first transaction has been done for you as an example.
Step by Step Answer:
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine