QUESTION ONE RJD Corporations had the following authorized capital on December 31, 2020: 10,000 shares of $100 par value, 8% cumulative and non-participating preference shares 50,000 shares of $10 par value ordinary shares. The following transactions took place during 2021: Jan 4 Issued 25,000 ordinary shares at $15 per share Mar 1 Received a piece of equipment valued at $132,000; a piece of land with fair value of $400,000 and machinery valued at $118,000 in exchange for 5,000 preference shares. Jun 20 Purchased 1,500 ordinary shares at $17 per share. (Use .cost method.) Aug 1 Sold the 1,500 treasury shares at $16 per share. Dec 31 Declared a $0.40 per share cash dividend on the ordinary shares and declared the preference dividend. Dec 31 Closed the Income Summary account. There was $250,000 net income. Requirements:
QUESTION ONE RJD Corporations had the following authorized capital on December 31, 2020: 10,000 shares of $100 par value, 8% cumulative and non-participating preference shares 50,000 shares of $10 par value ordinary shares. The following transactions took place during 2021: Jan 4 Issued 25,000 ordinary shares at $15 per share Mar 1 Received a piece of equipment valued at $132,000; a piece of land with fair value of $400,000 and machinery valued at $118,000 in exchange for 5,000 preference shares. Jun 20 Purchased 1,500 ordinary shares at $17 per share. (Use .cost method.) Aug 1 Sold the 1,500 treasury shares at $16 per share. Dec 31 Declared a $0.40 per share cash dividend on the ordinary shares and declared the preference dividend. Dec 31 Closed the Income Summary account. There was $250,000 net income. Requirements:
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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