Question

Grant Construction Ltd. prepares its reports using IFRS. The following information relates to its shareholders’ equity...

Grant Construction Ltd. prepares its reports using IFRS. The following information relates to its shareholders’ equity on January 1, 2021, the first day of its fiscal year.

$0.50-noncumulative preferred shares, unlimited number of shares authorized, 100,000 shares issued 1,200,000
Common shares, unlimited number of shares authorized, 1,200,000 shares issued 3,696,200
Contributed surplus—reacquisition of common shares 14,200
Retained earnings 7,100,000
Accumulated other comprehensive income (453,000)


During 2021, there were the following transactions related to shares.

1. On May 15, 2021, Grant purchased a Caterpillar bulldozer in exchange for 90,000 common shares with a market value of $3.15 per share. The fair value of the bulldozer was $295,400.
2. On June 1, 2021, Grant’s board of directors declared the semi-annual dividend to the preferred shareholders to shareholders of record on June 15, payable June 30.
3. The semi-annual dividend to the preferred shareholders is paid on the appropriate date.
4. On September 16, 2021, reacquired 40,000 common shares for $139,250 cash.
5. On December 15, 2021, Grant’s board of directors declared the second semi-annual dividend to the preferred shareholders payable December 30, 2021 and a 10% stock dividend to the common shareholders for shareholders of record on December 16, 2021, both payable January 20, 2022. The market price of the common shares at December 15, 2021 was $4.00 per share.
6.

Reported profit of $1,450,000 for the year.

Prepare a schedule showing all transactions for the common shares and the calculation of the average per share amount of shares issued. (Round the average per share to 2 decimal places, e.g. 5.27 and final answers to 0 decimal places, e.g. 5,276.

Date Transaction # Shares Proceeds Average
Per Share
Amount
Jan. 1 Beginning balance $ $
May. 15 Issued shares
Sub-total $
Sep. 16 Reacquisition
$
Dec. 15 Stock dividend
Balance Dec. 31 $ $

please do explain how to find the amounts

Business   Accounting   
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Answer #1
Date Transaction # shares Proceeds Average per share amount
Jan 1. Beginning balance 1200000 3696200 3.08
(3696200/1200000)
May 15. Issued shares 90000 283500 3.15
(90000*3.15)
Sub-total 1290000 3979700 3.09
(3979700/1290000)
Sep 16. Reacquisition -40000 -139250 3.48
(139250/40000)
Sub-total 1250000 3840450 3.07
(3840450/1250000)
Dec 15. Stock dividend 125000 500000 4
(1250000*10%) (125000*4)
Balance Dec 31. 1375000 4340450 3.16
(4340450/1375000)
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