Reference no: EM132603877

Question - The following shareholders' equity accounts are reported by Ivanhoe Inc. on January 1:

Common shares (unlimited authorized, 132,500 issued): $1,855,000

Preferred shares ($4 cumulative, convertible, 100,000 authorized, 4,300 issued): 322,500

Contributed surplus-reacquisition of common shares: 28,600

Retained earnings: 1,253,000

The following selected transactions occurred during the year:

Feb.11 Issued 46,500 common shares at $19 per share.

Mar.2 Reacquired 18,800 common shares at $21 per share.

June 14 Split the common shares 2 for 1 when the common shares were trading at $29 per share.

July 25 Reacquired 310 preferred shares at $58 per share.

Sept.16 Reacquired 46,500 common shares for $18 per share.

Oct.27 Declared a 5% common stock dividend distributable on December 13 to shareholders of record on November 24. The fair value of the common shares on October 27 was $21 per share.

Dec.13 Distributed the stock dividend declared on October 27. The fair value of the common shares on December 13 was $22 per share.

Prepare journal entries for the transactions and show how each class of shares will be presented in the shareholders' equity section of the balance sheet at December 31.