E14-21 In 2022, Amber Wilson, owner of Canyon Canoe Company, started a new company that will be operated as a corporation, Outdoor Equipment Incorporated (OEI) This company sells outdoor equipment. The articles of incorporation for OEI authorized the company to issue 500,000 preferred shares that pay a dividend of $4.00 per year and 1,000,000 common shares On January 1, 2023, the 2,000 preferred shares had a balance of $70,000 the 50,000 common shares had a balance of $200,000, and the retained earnings balance was $402,000 In January 2023, OEI has the following transactions related to its common shares Jan 3 The company sold 1,000 of its common shares for $8.00per share to a small number of people who believe in the company's potential for profit Jan 20 The company repurchased 100 of its common shares for $10.00 per share from a shareholder who was having financial difficulties Jan 30 The company sold 100 common shares for $12.00 per share Required 1) Journalize the entries related to the transactions 2) Calculate the ending balance in the Common Shares account 3) Prepare the statement of shareholder's equity for January 31, 2023. Assume that net income for the period was 67,500
E14-21
In 2022, Amber Wilson, owner of Canyon Canoe Company, started a new company that will be operated as a corporation, Outdoor Equipment Incorporated (OEI) This company sells outdoor equipment. The articles of incorporation for OEI authorized the company to issue 500,000
On January 1, 2023, the 2,000 preferred shares had a balance of $70,000 the 50,000 common shares had a balance of $200,000, and the retained earnings balance was $402,000
In January 2023, OEI has the following transactions related to its common shares
Jan 3 The company sold 1,000 of its common shares for $8.00per share to a small number of people who believe in the company's potential for profit
Jan 20 The company repurchased 100 of its common shares for $10.00 per share from a shareholder who was having financial difficulties
Jan 30 The company sold 100 common shares for $12.00 per share
Required
1)
2) Calculate the ending balance in the Common Shares account
3) Prepare the statement of shareholder's equity for January 31, 2023. Assume that net income for the period was 67,500
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