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  3. authorized to issue 100,000$4 cumulative preferred

Authorized to issue 100,000$4 cumulative preferred shares and up to 200,000 common shares, Smith ...

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Accounting

Authorized to issue 100,000$4 cumulative preferred shares and up to 200,000 common shares, Smith
Company Ltd. currently has $4,500 common shares outstanding worth $227,500 and no preferred
shares issued. The general ledger shows the opening retained earnings is $266,000.
The following transactions occurred during 2025:
REQUIRED:
Record the relevant entries in general journal form (23 marks)
Prepare a statement of changes in equity for the year ended 2025.(6 marks)
Prepare the equity section as it would be presented in the balance sheet as at December 31,
(4 marks)
Smith Company Inc. originally issued its 8,100 common shares at $29 per share and all are
outstandings as of August 1,2021.
REQUIRED:
Prepare general journal entries for the following:
Aug 1,2021- Purchased and retired 600 common shares at $19? share. (3 marks)
Sep 1,2021- Purchased and retired 500 common shares at $37 per share. (4 marks)
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