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At the beginning of 20X1, the accounting records of Friends Corp. reported the following:   Preferred shares, 6,800...

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Accounting

At the beginning of 20X1, the accounting records of FriendsCorp. reported the following:

  Preferred shares, 6,800 shares outstanding,no-par$226,440
  Common shares, 181,000 shares outstanding,no-par530,330
  Contributed capital on common share retirement110,900
  Retained earnings554,500


During the year, the company acquired and retired shares, whileother shares were issued:

15 March24,800 common shares bought and retired at $5 per share
16 March4,000 preferred shares bought and retired at $36.20 pershare
20 May8,800 common shares bought and retired at $1 per share
25 May1,500 preferred shares bought and retired at $21.70 pershare
30 May10,700 common shares issued at $13.70 per share
15 Nov.4,900 common shares bought and retired at $28 per share


2. Calculate the closing balance in each account in shareholders’equity. (Round intermediate calculations to 2 decimalplaces. Round your final answers to the nearest wholedollar.)

Preferred shares
Common shares
Contributed capital on shareretirement:
Common
Preferred
Retained earnings

Answer & Explanation Solved by verified expert
4.5 Ratings (680 Votes)
Par value for Common stock 530330181000 293 Par value for Preferred stock 2264406800 333 Some time Paid In capital excess of par value or additional paid in capital words used instead of Contributed Capital Company name Journal entries Date General journal Debit Credit 15Mar Contributed Capital on Common share retirement 248005293 51336 Common Stock 24800293 72664 Cash 248004 124000    See Answer
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