Largent Corporation, a publicly traded company, is authorized to issue 200,000 $4 cumulative…

Largent Corporation, a publicly traded company, is authorized to issue 200,000 $4 cumulative preferred shares and an unlimited number of common shares. On January 1, 2015, the general ledger contained the following shareholders equity accounts: Preferred shares (8,000 shares issued) …………………….. $ 440,000 Common shares (70,000 shares issued) …………………… 1,050,000 Additional contributed capital ……………………………. 25,000 Retained earnings …………………………………………. 800,000 Accumulated other comprehensive income ………………. 10,000 The following equity transactions occurred in 2015: Feb. 6 Issued 10,000 preferred shares for $600,000. Apr. 6 Issued 20,000 common shares for $560,000. May 29 Declared a semi-annual cash dividend to the preferred shareholders of record at June 12, payable July 1. Aug. 22 Issued 5,000 common shares in exchange for a building. At the time of the exchange, the building was valued at $165,000 and the common shares at $150,000. Dec. 15 The board decided there were insufficient funds to declare the semi-annual dividend to the preferred shareholders. 31 Profit for the year was $582,000. Instructions (a) Record the above transactions, including any entries required to close dividends and profit to Retained Earnings. (b) Open T accounts and post to the shareholders equity accounts. (c) Prepare the statement of changes in equity for the year.

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