138) Listed below are selected accounts from the general ledger of the JetNew Corporation. Assuming all accounts have normal balances, prepare the shareholders' equity section of the balance sheet for the JetNew Corporation as of December 31, 2010.
Common shares$ 50,000
Cash 40,000
Preferred shares 100,000
Accounts receivable 35,000
Contributed surplus-repurchase of common
shares15,000
Land50,000
Equipment75,000
Retained earnings45,000
Accumulated other comprehensive income50,000
How would this format differ typically in the real world?
139) Cough FX Limited reports the following shareholders' equity as of December 31, 2010:
Preferred shares, $5.00, authorized 100,000 shares,
issued 80,000 shares$4,400,000
Common shares, authorized 200,000 shares,
issued 150,000 shares, 146,000 outstanding2,190,000
Retained earnings 3,400,000$9,990,000
Determine the following:
a.What was the average issue price per common share?
b.What was the average issue price per preferred share?
c.Assume the board of directors declares dividends totaling $1,850,000 to the shareholders. The preferred shares are cumulative, and no dividends were declared last year. Calculate the amount per share each class of shares will receive.
d.Assume the board of directors authorizes a 2-for-1 split on the common shares. Calculate the number of shares outstanding after the split and the book value of Both classes of shares.
e.Assume the board of directors authorizes a 15% stock dividend on the common shares after the stock split. The current selling price of the common shares is $9. Prepare the journal entry to distribute the stock dividend.
140) JetNew has the follow share outstanding since their initial share offering:
30,000 shares of $2.00 cumulative preferred shares
60,000 common shares issued at $10 each
The board of directors has declared the following dividends:
2007none
2008$50,000
2009$80,000
2010$150,000
2011$260,000
What would the journal entry have looked like on the date of declaration for each year?