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The shareholders' equity section of Casey Inc. as at December 31, 20x0 is as follows: Preferred Shares - Series A, $4, cumulative and fully participating, 25,000 shares outstanding Preferred Shares, Series B, 6%, noncumulative and non participating Common Shares, 600,000 shares outstanding Contributed Surplus, common share repurchases Retained earnings $2,500,000 1,400,000 11,200,000 422,000 5,800,000 The following transactions occurred during the year ended December 31, 20x1: Jan 2 Issued an additional 15,000 Preferred Shares - Series A for $1,500,000. Mar 1 Issued 200,000 common shares for total proceeds of $5,000,000 Incurred underwiter and legal fees related to the common share issue of March 1 of $325,000 Mar 8 Purchased land in exchange for 20,000 common shares. The fair value of the land was $375,000. The common shares were trading for $18.20 per share on April 15. April 15 Declared a 3:1 stock split. The effect of the split was to drop the fair value per share from $18 to $9. May 15 Aug 31 Repurchased 130,000 common shares at $11.00 The net income for the year was $1,960,000 and a dividend of $1,300,000 was declared (show the breakdown of the dividends between all three types of shares, i.e. one dividend payable account for each class of shares) Dec 31 Required – Prepare the journal entries to record the above transactions. Round any per share data to three decimals.

The shareholders' equity section of Casey Inc. as at December 31, 20x0 is as follows: Preferred Shares - Series A, $4, cumulative and fully participating, 25,000 shares outstanding Preferred Shares, Series B, 6%, noncumulative and non participating Common Shares, 600,000 shares outstanding Contributed Surplus, common share repurchases Retained earnings $2,500,000 1,400,000 11,200,000 422,000 5,800,000 The following transactions occurred during the year ended December 31, 20x1: Jan 2 Issued an additional 15,000 Preferred Shares - Series A for $1,500,000. Mar 1 Issued 200,000 common shares for total proceeds of $5,000,000 Incurred underwiter and legal fees related to the common share issue of March 1 of $325,000 Mar 8 Purchased land in exchange for 20,000 common shares. The fair value of the land was $375,000. The common shares were trading for $18.20 per share on April 15. April 15 Declared a 3:1 stock split. The effect of the split was to drop the fair value per share from $18 to $9. May 15 Aug 31 Repurchased 130,000 common shares at $11.00 The net income for the year was $1,960,000 and a dividend of $1,300,000 was declared (show the breakdown of the dividends between all three types of shares, i.e. one dividend payable account for each class of shares) Dec 31 Required – Prepare the journal entries to record the above transactions. Round any per share data to three decimals.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings
Section: Chapter Questions
Problem 9SPB: CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT During the year ended December 31, 20--, Baggio...
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The shareholders' equity section of Casey Inc. as at December 31, 20x0 is as follows: Preferred Shares – Series A, $4, cumulative and fully participating, 25,000 shares outstanding Preferred Shares, Series B, 6%, noncumulative and non participating Common Shares, 600,000 shares outstanding Contributed Surplus, common share repurchases Retained earnings S2,500,000 1,400,000 11,200,000 422,000 5,800,000 The following transactions occurred during the year ended December 31, 20x1: Jan 2 Issued an additional 15,000 Preferred Shares – Series A for S1,500,000. Mar 1 Issued 200,000 common shares for total proceeds of $5,000,000 Mar 8 Incurred underwiter and legal fees related to the common share issue of March 1 of $325,000 Purchased land in exchange for 20,000 common shares. The fair value of the land was $375,000. The common shares were trading for $18.20 per share on April 15. April 15 Declared a 3:1 stock split. The effect of the split was to drop the fair value per share from $18 to $9. May 15 Aug 31 Repurchased 130,000 common shares at $11.00 The net income for the year was $1,960,000 and a dividend of $1,300,000 was declared (show the breakdown of the dividends between all three types of shares, i.e. one dividend payable account for each class of shares) Dec 31 Required – Prepare the journal entries to record the above transactions. Round any per share data to three decimals.
Transcribed Image Text:The shareholders' equity section of Casey Inc. as at December 31, 20x0 is as follows: Preferred Shares – Series A, $4, cumulative and fully participating, 25,000 shares outstanding Preferred Shares, Series B, 6%, noncumulative and non participating Common Shares, 600,000 shares outstanding Contributed Surplus, common share repurchases Retained earnings S2,500,000 1,400,000 11,200,000 422,000 5,800,000 The following transactions occurred during the year ended December 31, 20x1: Jan 2 Issued an additional 15,000 Preferred Shares – Series A for S1,500,000. Mar 1 Issued 200,000 common shares for total proceeds of $5,000,000 Mar 8 Incurred underwiter and legal fees related to the common share issue of March 1 of $325,000 Purchased land in exchange for 20,000 common shares. The fair value of the land was $375,000. The common shares were trading for $18.20 per share on April 15. April 15 Declared a 3:1 stock split. The effect of the split was to drop the fair value per share from $18 to $9. May 15 Aug 31 Repurchased 130,000 common shares at $11.00 The net income for the year was $1,960,000 and a dividend of $1,300,000 was declared (show the breakdown of the dividends between all three types of shares, i.e. one dividend payable account for each class of shares) Dec 31 Required – Prepare the journal entries to record the above transactions. Round any per share data to three decimals.
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