Reference no: EM133002767
Problem - XYZ Corporation, a publicly traded company is authorized to issue 200,000 no-par value $3 cumulative preferred shares and an unlimited number of no par value common shares. On January 1, 2020, the general ledger contained the shareholders' equity accounts:
Preferred shares (10,000 shares issued) 450,000
Common shares (80,000, shares issued) 1,060,000
Contributed capital 35,000
Retained earnings 900,000
The following equity transactions occurred in 2020:
- Jan 10: Reacquired and retired 12,000 common shares for $220,000
- Feb 6: Issued 7,000 preferred shares for $650,000
- Apr 6: Issued 25,000 common shares for $600,000
- Aug 22: Issued 6,000 common shares in exchange for a building. At the time of the exchange, the building was valued at $180,000 and the common shares at $160,000
- Dec. 1: Declared a dividend to the preferred shareholders of record at Dec. 12, payable January 1
Required -
1. Record journal entries for the above transactions in your rough work. This will be submitted at the end of the test. Explanations are not required.
2. What is the total value of Common Shares as of December 31, 2020?
3. What is the total value of Preferred Shares as of December 31, 2020?
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