Reference no: EM132430341

Question - Bentley Corporation's corporate charter authorized the issuance of 10,000,000 shares of 51 par value common stock and 1,000,000 shares of 5%, $25 par value, cumulative, nonparticipating preferred stock.

At December 31, 2018, the shareholders' equity section of Bentley's balance sheet included the following:

All numbers in millions, except numbers of shares and per share amounts

Preferred stock: 5%, $25 par/share; cumulative, nonparticipating; 1,000,000 shares authorized, issued, and outstanding $25

Additional paid-in capital, preferred 5

Common stock: $1 par/share; 10,000,000 shares authorized; 4,000,000 shares issued and outstanding 4

Additional paid-in capital, common 116

Retained earnings 75

Treasury stock -

Accumulated other comprehensive income 50

Total shareholders' equity $275

Bentley does not repurchase preferred shares, and uses the treasury stock method to account for repurchased common shares. The company does not pay stock dividends on treasury shares. The company did not declare any dividends in 2017 or 2018. Bentley's comprehensive income statement reported $7 million in net income and other comprehensive income net losses of $4,500,000.

Prepare the journal entry or entries to record each of the following events that occurred in 2019.

1. January 3 The Company issued 2 million shares of common stock at $40 per share.

2. March 31 Bentley reacquired 9 hundred thousand shares for $33 per share.

3. April 10 The board of directors declared a 15% stock dividend on shares outstanding. The stock was trading at $35 at that time.

4. August 15 Bentley sold 2 hundred thousand treasury shares for $39 per share.

5. December 1 The board of directors declared and paid $16 million in cash dividends.

6. Additional question: What was the per share amount of cash dividends paid to the common shareholders in 2019?

7. Prepare the shareholders' equity section of the 12/31/2019 balance sheet.