Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. journal entry's the january 1, 2020 opening balanc

JOURNAL ENTRY'S The January 1, 2020 opening balance in common shares was $3,600,000 (300,000 shares)...

50.1K

Verified Solution

Question

Accounting

JOURNAL ENTRY'S

The January 1, 2020 opening balance in common shares was $3,600,000 (300,000 shares)

The January 1, 2020 opening balance in prefered shares was $500,000 (10,000 preferred shares).

1. On January 1, 2020 there were dividends in arrears on the preferred shares of $30,000.

2. On June 25, 2020 one of the company's shareholders needed cash for personal reasons.

The company agreed to reacquire 20,000 common shares from this shareholder

for $15 per share. The opening credit balance at January 1, 2020 in the contributed surplus

account was $50,769.

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