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oped Cookware Inc. (CCI) designs, manufactures and sells high-end cookware to the culinary industry and home chefs. O, with an unlimited number of common shares, and 50,000 preferred shares with a $3 dividend rate authorized. CCI F sactions took place during their first year of operations with respect to share capital: January 1st January 15th February 20th March 3rd May 10th The articles of incorporation were filed and state that an unlimited number of common shares and authorized. 30,000 common shares were sold by subscription to three individuals, who each purchased 10,00 terms require 10% of the balance to be paid in cash immediately; The balance was to be paid by Dec the shares will be issued. 70,000 common shares were sold by subscription to seven individuals, who each purchased 10,000 terms require that 10% of the balance be paid in cash immediately, with the balance to be paid by C to be issued once the full payment is received. 50,000 common shares were sold by an underwriter for $52 per share. The underwriter charged CCI CCI paid $2,000 to a printing company for costs involved in printing common share certificates. As w

oped Cookware Inc. (CCI) designs, manufactures and sells high-end cookware to the culinary industry and home chefs. O, with an unlimited number of common shares, and 50,000 preferred shares with a $3 dividend rate authorized. CCI F sactions took place during their first year of operations with respect to share capital: January 1st January 15th February 20th March 3rd May 10th The articles of incorporation were filed and state that an unlimited number of common shares and authorized. 30,000 common shares were sold by subscription to three individuals, who each purchased 10,00 terms require 10% of the balance to be paid in cash immediately; The balance was to be paid by Dec the shares will be issued. 70,000 common shares were sold by subscription to seven individuals, who each purchased 10,000 terms require that 10% of the balance be paid in cash immediately, with the balance to be paid by C to be issued once the full payment is received. 50,000 common shares were sold by an underwriter for $52 per share. The underwriter charged CCI CCI paid $2,000 to a printing company for costs involved in printing common share certificates. As w

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 8PB: Tent Tarp Corporation is a manufacturer of outdoor camping equipment. The company was incorporated...
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0 2 4 16 18 20 22 Chopped Cookware Inc. (CCI) designs, manufactures and sells high-end cookware to the culinary industry and home chefs. CCI was incorporated during 2020, with an unlimited number of common shares, and 50,000 preferred shares with a $3 dividend rate authorized. CCI follows ASPE. The following transactions took place during their first year of operations with respect to share capital: January 1st January 15th February 20th March 3rd May 10th September 23rd November 28th December 31st The articles of incorporation were filed and state that an unlimited number of common shares and 50,000 preferred shares are authorized. December 31st 30,000 common shares were sold by subscription to three individuals, who each purchased 10,000 shares for $50 per share. The terms require 10% of the balance to be paid in cash immediately. The balance was to be paid by December 31, 2021, at which time the shares will be issued. 70,000 common shares were sold by subscription to seven individuals, who each purchased 10,000 shares for $50 per share. The terms require that 10% of the balance be paid in cash immediately, with the balance to be paid by December 31, 2020. Shares are to be issued once the full payment is received. 50,000 common shares were sold by an underwriter for $52 per share. The underwriter charged CCI a 5% commission on the sale. CCI paid $2,000 to a printing company for costs involved in printing common share certificates. As well, an invoice for legal fees related to the issue of common shares was received for $15,000.; CCI issued a combination of 2,000 common and 1,000 preferred shares to a new shareholder for a total price of $200,000. CCI was unable to estimate a fair value of the preferred shares, and the most recent sale of common shares was used to estimate the value of the common share portion of the transaction. CCI wanted to recognize the efforts of a key employee and offered him the opportunity to purchase 500 common shares for $52, to be paid by December 31, 2021. The employee accepted the offer and signed a note payable to CCI in the exchange. No interest was to be charged on the outstanding balance; however, the shares were issued immediately. Of the seven subscriptions issued on February 20, five subscriptions were paid in full and two subscribers defaulted. According to the subscription contract, the defaulting subscribers would not be issued shares for any amount that had been paid and no cash would be refunded. CCI declared a dividend of $200,000 for 2020. Net income for the year was $800,000. 24 26 28 REQUIRED: 30 1. Prepare the journal entries to record the transactions for the year. 31 2. What was amount of the Dividend Per Common Share declared on December 31st? Round to two decimal places. 32 3. Prepare the Shareholders' Equity section of the Statement of Financial Position as at December 31, 2020. 33
Transcribed Image Text:0 2 4 16 18 20 22 Chopped Cookware Inc. (CCI) designs, manufactures and sells high-end cookware to the culinary industry and home chefs. CCI was incorporated during 2020, with an unlimited number of common shares, and 50,000 preferred shares with a $3 dividend rate authorized. CCI follows ASPE. The following transactions took place during their first year of operations with respect to share capital: January 1st January 15th February 20th March 3rd May 10th September 23rd November 28th December 31st The articles of incorporation were filed and state that an unlimited number of common shares and 50,000 preferred shares are authorized. December 31st 30,000 common shares were sold by subscription to three individuals, who each purchased 10,000 shares for $50 per share. The terms require 10% of the balance to be paid in cash immediately. The balance was to be paid by December 31, 2021, at which time the shares will be issued. 70,000 common shares were sold by subscription to seven individuals, who each purchased 10,000 shares for $50 per share. The terms require that 10% of the balance be paid in cash immediately, with the balance to be paid by December 31, 2020. Shares are to be issued once the full payment is received. 50,000 common shares were sold by an underwriter for $52 per share. The underwriter charged CCI a 5% commission on the sale. CCI paid $2,000 to a printing company for costs involved in printing common share certificates. As well, an invoice for legal fees related to the issue of common shares was received for $15,000.; CCI issued a combination of 2,000 common and 1,000 preferred shares to a new shareholder for a total price of $200,000. CCI was unable to estimate a fair value of the preferred shares, and the most recent sale of common shares was used to estimate the value of the common share portion of the transaction. CCI wanted to recognize the efforts of a key employee and offered him the opportunity to purchase 500 common shares for $52, to be paid by December 31, 2021. The employee accepted the offer and signed a note payable to CCI in the exchange. No interest was to be charged on the outstanding balance; however, the shares were issued immediately. Of the seven subscriptions issued on February 20, five subscriptions were paid in full and two subscribers defaulted. According to the subscription contract, the defaulting subscribers would not be issued shares for any amount that had been paid and no cash would be refunded. CCI declared a dividend of $200,000 for 2020. Net income for the year was $800,000. 24 26 28 REQUIRED: 30 1. Prepare the journal entries to record the transactions for the year. 31 2. What was amount of the Dividend Per Common Share declared on December 31st? Round to two decimal places. 32 3. Prepare the Shareholders' Equity section of the Statement of Financial Position as at December 31, 2020. 33
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