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-par 530,330
  Contributed capital on common share retirement 110,900
  Retained earnings 554,500

During the year, the company acquired and retired shares, whileother shares were issued:
15 March 24,800 common shares bought and retired at $5 per share
16 March 4,000 preferred shares bought and retired at $36.20 pershare
20 May 8,800 common shares bought and retired at $1 per share
25 May 1,500 preferred shares bought and retired at $21.70 pershare
30 May 10,700 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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Preferred shares, 6,800 shares outstanding,no-par	$	226,440
Common shares, 181,000 shares outstanding,no-par		530,330
Contributed capital on common share retirement		110,900
Retained earnings		554,500

15 March	24,800 common shares bought and retired at $5 per share
16 March	4,000 preferred shares bought and retired at $36.20 pershare
20 May	8,800 common shares bought and retired at $1 per share
25 May	1,500 preferred shares bought and retired at $21.70 pershare
30 May	10,700 common shares issued at $13.70 per share
15 Nov.	4,900 common shares bought and retired at $28 per share