Reference no: EM132531753

North Star Co. had the following equity section on is Balance Sheet December 31, 2017 Contributed capital:

Preferred shares, $4, cumulative, unlimited shares authorized. 40,000 shares issued and outstanding Common Shares, unlimited authorized

500,000 shares issued and outstanding

                                       Total contributed capital      Retained earnings                Total Equity

Net income for the year was $268,000

The following share transactions occurring during 2018. (Jan 1 - Dec 31)

$1,440,000               2,340,000           $3,780,000            820,000              $4,600,000

March 5 Nov 22

Nov 30

• Exchanged 80,000 common shares for a building with a fair market value of $400,000.
• Declared the preferred share dividend and a $0.30 cash dividend to the common shareholders.
• ( There were $32,000 outstanding preferred dividends due from 2017) Reminder: Don't forget to include the sale on March 5
• Paid the dividends declared on Nov 22.

Required:

Question a) Prepare the journal entries for the three share transactions Note: Ensure you take into consideration the additional shares sold in 2018 and the preferred dividends owed from 2017.

Question b) What is the average the company received for its common shares as of December 31, 2018

Question c) Prepare Statement of Changes in Equity for December 31, 2018