Major Communications Ltd., a publicly traded company that specializes in data capture, has been in operation for several years. On October 1, 2019, it had 10 million common shares authorized and 1,400,000 shares issued at an average value of $29 per share. As well, there were 1 million preferred shares authorized, with 220,000 of them issued at $16 per share. During the fiscal year ended September 30, 2020, the company generated net income after taxes of $22,620,000 and other comprehensive loss of $5,150,000. On October 1, 2019, the balance in Retained Earnings was $18,600,000 and the balance in Accumulated Other Comprehensive Income was $910,000. The preferred shares pay an annual dividend of $1.10. During the fiscal year 2020, the following transactions affected shareholders’ equity: 1. On November 1, 2019, 400,000 new common shares were issued at $31 per share. 2. On March 15, 2020, a 5% common stock dividend on the outstanding shares was declared and distributed when the market price was $46 per share. 3. On September 1, 2020, a dividend of $5.65 per common share was declared. The date of record was September 15, 2020, with the date of payment being October 5, 2020. 4. The preferred dividend for the year was declared and paid. Prepare the statement of changes in shareholders’ equity as at September 30, 2020. (If an amount reduces the account balance then enter with negative sign, e.g. -15,000 or in parenthesis, e.g. (15,000).) Major Communications Ltd. Statement of Changes in Shareholders’ Equity Year Ended September 30, 2020 Number of common shares Common shares Number of preferred shares Preferred shares Retained earnings Accumulated other comprehensive income Total Oct. 1, 2019 Enter a number of shares. $Enter a dollar amount. Enter a number of shares. $Enter a dollar amount. $Enter a dollar amount. $Enter a dollar amount. $Enter a dollar amount. Common shares issued Enter a number of shares. Enter a dollar amount. Enter a number of shares. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Stock dividend - common shares Enter a number of shares. Enter a dollar amount. Enter a number of shares. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Common cash dividends Enter a number of shares. Enter a dollar amount. Enter a number of shares. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Preferred cash dividend Enter a number of shares. Enter a dollar amount. Enter a number of shares. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Net income Enter a number of shares. Enter a dollar amount. Enter a number of shares. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Other comprehensive loss Enter a number of shares. Enter a dollar amount. Enter a number of shares. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Sept. 30, 2020 Enter a total number of shares. $Enter a total amount. Enter a total number of shares. $Enter a total amount. $Enter a total amount. $Enter a total amount. $Enter a total amount.

Major Communications Ltd., a publicly traded company that specializes in data capture, has been in operation for several years. On October 1, 2019, it had 10 million common shares authorized and 1,400,000 shares issued at an average value of $29 per share. As well, there were 1 million preferred shares authorized, with 220,000 of them issued at $16 per share. During the fiscal year ended September 30, 2020, the company generated net income after taxes of $22,620,000 and other comprehensive loss of $5,150,000. On October 1, 2019, the balance in Retained Earnings was $18,600,000 and the balance in Accumulated Other Comprehensive Income was $910,000. The preferred shares pay an annual dividend of $1.10. During the fiscal year 2020, the following transactions affected shareholders’ equity: 1. On November 1, 2019, 400,000 new common shares were issued at $31 per share. 2. On March 15, 2020, a 5% common stock dividend on the outstanding shares was declared and distributed when the market price was $46 per share. 3. On September 1, 2020, a dividend of $5.65 per common share was declared. The date of record was September 15, 2020, with the date of payment being October 5, 2020. 4. The preferred dividend for the year was declared and paid. Prepare the statement of changes in shareholders’ equity as at September 30, 2020. (If an amount reduces the account balance then enter with negative sign, e.g. -15,000 or in parenthesis, e.g. (15,000).) Major Communications Ltd. Statement of Changes in Shareholders’ Equity Year Ended September 30, 2020 Number of common shares Common shares Number of preferred shares Preferred shares Retained earnings Accumulated other comprehensive income Total Oct. 1, 2019 Enter a number of shares. $Enter a dollar amount. Enter a number of shares. $Enter a dollar amount. $Enter a dollar amount. $Enter a dollar amount. $Enter a dollar amount. Common shares issued Enter a number of shares. Enter a dollar amount. Enter a number of shares. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Stock dividend - common shares Enter a number of shares. Enter a dollar amount. Enter a number of shares. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Common cash dividends Enter a number of shares. Enter a dollar amount. Enter a number of shares. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Preferred cash dividend Enter a number of shares. Enter a dollar amount. Enter a number of shares. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Net income Enter a number of shares. Enter a dollar amount. Enter a number of shares. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Other comprehensive loss Enter a number of shares. Enter a dollar amount. Enter a number of shares. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Enter a dollar amount. Sept. 30, 2020 Enter a total number of shares. $Enter a total amount. Enter a total number of shares. $Enter a total amount. $Enter a total amount. $Enter a total amount. $Enter a total amount.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

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1.		On November 1, 2019, 400,000 new common shares were issued at $31 per share.
2.		On March 15, 2020, a 5% common stock dividend on the outstanding shares was declared and distributed when the market price was $46 per share.
3.		On September 1, 2020, a dividend of $5.65 per common share was declared. The date of record was September 15, 2020, with the date of payment being October 5, 2020.
4.		The preferred dividend for the year was declared and paid.

Prepare the statement of changes in shareholders’ equity as at September 30, 2020. (If an amount reduces the account balance then enter with negative sign, e.g. -15,000 or in parenthesis, e.g. (15,000).)

Major Communications Ltd. Statement of Changes in Shareholders’ Equity Year Ended September 30, 2020
	Number of common shares	Common shares	Number of preferred shares	Preferred shares	Retained earnings	Accumulated other comprehensive income	Total
Oct. 1, 2019	Enter a number of shares.	$Enter a dollar amount.	Enter a number of shares.	$Enter a dollar amount.	$Enter a dollar amount.	$Enter a dollar amount.	$Enter a dollar amount.
Common shares issued	Enter a number of shares.	Enter a dollar amount.	Enter a number of shares.	Enter a dollar amount.	Enter a dollar amount.	Enter a dollar amount.	Enter a dollar amount.
Stock dividend - common shares	Enter a number of shares.	Enter a dollar amount.	Enter a number of shares.	Enter a dollar amount.	Enter a dollar amount.	Enter a dollar amount.	Enter a dollar amount.
Common cash dividends	Enter a number of shares.	Enter a dollar amount.	Enter a number of shares.	Enter a dollar amount.	Enter a dollar amount.	Enter a dollar amount.	Enter a dollar amount.
Preferred cash dividend	Enter a number of shares.	Enter a dollar amount.	Enter a number of shares.	Enter a dollar amount.	Enter a dollar amount.	Enter a dollar amount.	Enter a dollar amount.
Net income	Enter a number of shares.	Enter a dollar amount.	Enter a number of shares.	Enter a dollar amount.	Enter a dollar amount.	Enter a dollar amount.	Enter a dollar amount.
Other comprehensive loss	Enter a number of shares.	Enter a dollar amount.	Enter a number of shares.	Enter a dollar amount.	Enter a dollar amount.	Enter a dollar amount.	Enter a dollar amount.
Sept. 30, 2020	Enter a total number of shares.	$Enter a total amount.	Enter a total number of shares.	$Enter a total amount.	$Enter a total amount.	$Enter a total amount.	$Enter a total amount.

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