Question

Petra Corporation's, widely held, public company. Information about its shareholders equity is as follows: Petra Co....

Petra Corporation's, widely held, public company. Information about its shareholders equity is as follows:

Petra Co.

Shareholders’ equity

December 31, 2019

Preferred shares, no par value, 8% cumulative, 1,000 issued and outstanding      $100,000

Common shares, 100,000 authorized, 12,000 issued and outstanding                   $180,000

Contributed Surplus-common shares                                                                         $6,000

Contributed Surplus-Preferred shares                                                                      $50,000

Retained earnings                                                                                                     $40,000

Instructions:

1- Prepare all journal entries for the following transaction (assuming all occurred during 2020):

A) Jan 7, Issued 3,500 common shares at $19 per share for cash

B) Feb 12, Issued 1,000 preferred shares 8% cumulative at $150 each

C) May 8, bought   and   cancelled 1000 common shares at $25 per share

D) June 6 Issued 1,500 common shares at $22 per share for cash

E) June 20, bought   and   cancelled 2,000 common share at $40 per share

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Journal Entries
Date Item Debit (Dr) Credit (Cr)
01/07/2020 Issue of Common Shares Cash Account $66,500
Common Share Account $66,500
02/12/2020 Issue of Preference Shares at 8% Cumulative Cash Account $150,000
Preference Share Account $150,000
05/08/2020 Purchase of Common Shares Common Share Purchased Account $25,000
Cash Account $25,000
05/08/2020 Cancellation of Common Shares Cash Account $25,000
Common Share Purchased Account $25,000
06/06/2020 Issue of Common Shares Cash Account $33,000
Common Share Account $33,000
06/20/2020 Purchase of Common Shares Common Share Purchased Account $80,000
Cash Account $80,000
06/20/2020 Cancellation of Common Shares Cash Account $80,000
Common Share Purchased Account

$80,000
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following is the shareholders’ equity section of Ayayai Corp. at December 31, 2020: Preferred shares,a...
The following is the shareholders’ equity section of Ayayai Corp. at December 31, 2020: Preferred shares,a authorized 100,000 shares; issued 33,000 shares $ 1,155,000 Common shares (unlimited authorized, 51,000 issued) 1,275,000 Contributed surplus 107,000 Total paid-in capital 2,537,000 Retained earnings 2,962,600 Total shareholders’ equity $ 5,499,600 a The preferred shares have a $2 dividend rate, are cumulative, and participate in distributions in excess of a $3 dividend on the common shares. Q. No dividends were paid in 2018 or 2019....
Buildex Corporation's balance sheet reported the following shareholders' equity as of December 31, 2021: Shareholders’ Equity...
Buildex Corporation's balance sheet reported the following shareholders' equity as of December 31, 2021: Shareholders’ Equity Share capital: Preferred shares, $ 4 cumulative, 30,000 shares                  authorized, 4,000 shares issued                                                       $   850,000 Common shares, unlimited shares authorized,                  175,000 shares issued                                                                           1,350,000 Total share capital                                                                                                 $ 2,000,000 Retained earnings                                                                                                        300,000 Total shareholders' equity                                                                                   $ 2,300,000 Additional information: No dividends were declared in the prior year - 2020. Dividends were fully paid in all...
Statement of Shareholders' Equity At the end of 2017, Jeffco Inc. had the following equity accounts...
Statement of Shareholders' Equity At the end of 2017, Jeffco Inc. had the following equity accounts and balances: Common shares, no par (175,000 shares issued and outstanding) $1,926,400 Retained earnings 310,000 During 2018, Jeffco engaged in the following transactions involving its equity accounts: Issued 8,000 common shares for $35 per share. Issued 1,000 shares of 9%, $120 stated value preferred shares at $125 per share. Declared and paid cash dividends of $15,000. Repurchased and cancelled 500 common shares for $52...
Book Value for Preferred and Common Stock The stockholders' equity section of Plaka Corporation's balance sheet...
Book Value for Preferred and Common Stock The stockholders' equity section of Plaka Corporation's balance sheet follows. Contributed capital: Preferred stock, $100 par value, callable at $105 per share, 6 percent cumulative, 5,000 shares authorized, 100 shares issued and outstanding $10,000 Common stock, $5 par value, 50,000 shares authorized, 5,000 shares issued, 4,500 shares outstanding 25,000 Additional paid-in capital 14,000 Total contributed capital $49,000 Retained earnings 47,500 Total contributed capital and retained earnings $96,500 Less treasury stock, common (500 shares...
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...
Preferred shares,a authorized 100,000 shares; issued 33,000 shares $ 1,155,000 Common shares (unlimited authorized, 51,000 issued)...
Preferred shares,a authorized 100,000 shares; issued 33,000 shares $ 1,155,000 Common shares (unlimited authorized, 51,000 issued) 1,275,000 Contributed surplus 107,000 Total paid-in capital 2,537,000 Retained earnings 2,962,600 Total shareholders’ equity $ 5,499,600 a The preferred shares have a $2 dividend rate, are cumulative, and participate in distributions in excess of a $3 dividend on the common shares. Q. No dividends were paid in 2018 or 2019. On December 31, 2020, Ayayai wants to pay a cash dividend of $5 per...
The shareholders’ equity section of Riverbed Corporation as at December 31, 2020, follows: 10% cumulative preferred...
The shareholders’ equity section of Riverbed Corporation as at December 31, 2020, follows: 10% cumulative preferred shares, 100,000 shares authorized, 65,000 shares outstanding $4,300,000 Common shares, 10 million shares authorized and issued 10,000,000 Contributed surplus 11,000,000 25,300,000 Retained earnings 176,000,000 $201,300,000 Net income of $25 million for 2020 reflects a total effective tax rate of 26%. Included in the net income figure is a loss of $16 million (before tax) relating to the operations of a business segment that is...
The shareholders’ equity section of Pronghorn Corporation as at December 31, 2020, follows: 10% cumulative preferred...
The shareholders’ equity section of Pronghorn Corporation as at December 31, 2020, follows: 10% cumulative preferred shares, 100,000 shares authorized, 73,000 shares outstanding $4,400,000 Common shares, 10 million shares authorized and issued 10,000,000 Contributed surplus 10,000,000 24,400,000 Retained earnings 172,000,000 $196,400,000 Net income of $25 million for 2020 reflects a total effective tax rate of 26%. Included in the net income figure is a loss of $15 million (before tax) relating to the operations of a business segment that is...
Raphael Corporation’s balance sheet shows the following stockholders’ equity section. Preferred stock—5% cumulative, $___ par value,...
Raphael Corporation’s balance sheet shows the following stockholders’ equity section. Preferred stock—5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding $ 50,000 Common stock—$___ par value, 4,000 shares authorized, issued, and outstanding 100,000 Retained earnings 370,000 Total stockholders' equity $ 520,000 1. What are the par values of the corporation’s preferred stock and its common stock? Par Value Corporation's preferred stock Corporation's common stock 2. If no dividends are in arrears at the current date, what is the...
Pharoah Company had the following Shareholders’ Equity accounts as of May 1, 2020: Share capital:       Preferred...
Pharoah Company had the following Shareholders’ Equity accounts as of May 1, 2020: Share capital:       Preferred shares, 50,000 issued and outstanding $640,000       Class A common shares, 50,000 issued and outstanding 285,000       Class B common shares, 360,000 issued and outstanding 2,160,000 Retained earnings 3,305,000       Total shareholders’ equity $6,390,000 On June 10, Pharoah reacquired and cancelled 1,900 Class A common shares at a cost of $4.95 per share. On August 26, 2020, Pharoah issued 3,800 Class A common shares for $8.90 each....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT