Reference no: EM133000672
Question - The following is an excerpt from Patterson Ltd.'s (PL's) year-end balance sheet: Patterson Ltd. Shareholders' Equity
October 31, 2019
Preferred shares Series A: 3.5% non-cumulative, 100,000 shares authorized, 14,500 issued & outstanding $14,500,000
Common shares Unlimited authorized, 3,200,000 issued & outstanding 57,920,000
Retained Earnings 3,125,000
Accumulated Other Comprehensive Income/(Loss) (497,000) $75,048,000
During fiscal 2020, the following capital transactions took place:
1. December 4, 2019: PL issued 155,000 common shares in exchange for technology. The shares were trading for $23.30 on that day. As part of the transaction, PL paid an underwriting fee of $54,000.
2. August 10, 2020: PL created a new class of preferred shares, Series B. The shares are cumulative, carry a 3.5% dividend, and are mandatorily redeemable on August 9, 2028. 2,100 shares were issued for $10,000 each. The corporate charter was amended to authorize 100,000 shares of this class.
3. August 12, 2020: Using a portion of the proceeds from the Series B Preferred shares issue, PL repurchased 350,000 common shares in the market for $21.05 each.
Required - Provide the journal entries to record the capital transactions that took place in fiscal 2020.
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