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Accustart Corporation, a publicly traded company, is authorized to issue 217,000 $4 noncumulative preferred shares...

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Accounting

Accustart Corporation, a publicly traded company, is authorized to issue 217,000 $4 noncumulative preferred shares and an unlimited number of common shares. On January 1, 2021, the general ledger contained the following shareholders equity accounts: Preferred shares (8,400 shares issued) $462,000 Common shares (67,900 shares issued) 1,086,400 Contributed surplus 22,600 Retained earnings 879,000 Accumulated other comprehensive income 10,300 The following equity transactions occurred in 2021: Feb. 6 Issued 9,800 preferred shares for $597,800. Apr. 6 Issued 19,400 common shares for $572,300. 27 Repurchased and retired 3,000 common shares at $18 per share. The balance in the Contributed Surplus account arose from the repurchase of common shares in prior years. May 29 Declared a semi-annual cash dividend to the preferred shareholders of record at June 12, payable July 1. Aug. 22 Issued 9,800 common shares in exchange for a building. At the time of the exchange, the building was valued at $154,600 and the common shares at $140,000. Dec. 14 The board of directors decided there were insufficient funds to declare the semi-annual dividend to the preferred shareholders. 31 Net income for the year was $590,000.

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