Calculate the year-end balance

Assignment Help Accounting Basics

Reference no: EM132974547

Complete the necessary accounting for a Corporation based on the information below:

Ardmark Corporation was incorporated on January 1, 2019. It is authorized to issue an unlimited number of $10 stated value preferred shares ($2 dividend) that are cumulative, as well 1,000 common shares of no par value. The following share transactions were completed during the first year:

Jan. 1 Issued 100 common shares for cash at $40 per share.
Mar. 21 Issued 10,000 preferred shares for land. The land was listed for sale at $110,000, but was valued by a licensed appraiser at $100,000.
Apr. 17th issued 200 common shares to pay a consultant's bill of $8,000.
July 23rd issued 5,000 preferred shares for cash at $12 per share.
Sept. 1st issued 20 common shares to a law firm for payment of their bill of $800 to file the company's incorporation documents.
Sept. 1st issued 40 common shares for $2,000 cash.
Dec. 18th issued 6,000 preferred shares for cash at $11 each.
Dec. 20th declared a $45,000 dividend.
Dec. 31st a cash payment is made to shareholders for their dividend.

Instructions

Journalize the transactions.

Calculate the year-end balance in each of the share capital accounts.

Prepare Shareholder's Equity section if the balance in Retained Earning is $500,000.

Success Criteria

In a non-cash transaction, the fair market value of what is given up should be used. If that is not clearly identifiable, then the fair market value of what is received should be used.

To calculate the year-end balances, accumulate the transactions of the year by share class.

Reference no: EM132974547

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