Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. aim inc. showed the following equity account balan

AIM Inc. showed the following equity account balances on the December 31, 2022, balance sheet:...

70.2K

Verified Solution

Question

Accounting

AIM Inc. showed the following equity account balances on the December 31, 2022, balance sheet: Common shares, unlimited authorized shares, 1,028,500 shares issued and outstanding $ 8,845,100 Retained earnings 2,247,100 During 2023, the following selected transactions occurred: Feb. 10 Repurchased and retired 149,400 common shares at $10.00 per share; this is the first retirement recorded by AIM. May 15 Declared a 2:1 share split to shareholders of record on June 1, distributable June 15. Dec. 1 Declared a 10% share dividend to shareholders of record on December 10, distributable December 20. The market prices of the shares on December 1, December 10, and December 20 were $5.00 $7.10, and $5.90, respectively. 20 Distributed the share dividend declared December 1. 31 Closed the credit balance of $1,064,804 in the Income Summary account. Required: a. Journalize the transactions above (assuming the retirements were the first ever recorded by AIM Inc.). The company does not use a share dividends account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) b. Prepare the equity section on the December 31, 2023, balance sheet

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students