On January 1, 2017, Conway Ltd. had the following shareholders'equity accounts:Common shares, unlimited number...On...

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Accounting

On January 1, 2017, Conway Ltd. had the following shareholders'equity accounts:
Common shares, unlimited number of shares authorized, 1.5million issued - $1,650,000
Retained earnings- 550,000
It was also authorized to issue an unlimited number of $6noncumulative preferred shares. During 2017, the corporation hadthe following transactions and events related to its shareholders'equity:
Jan 2 Issued 100,000 preferred shares at $66 per share
March 31 Paid quarterly dividend to preferred shareholders
April 18 Issued 250,000 common shares at $1.30 each
June 30 Paid quarterly dividend to preferred shareholders
Sept 30 Paid quarterly dividend to preferred shareholders
Dec 31 Paid quarterly dividend to preferred shareholders
Dec 31 Profit for the year was $160,000
a) Journalize the transactions and the entries to closedividends and the Income Summary account
b) Open general ledger accounts for the shareholder's equityaccounts, enter the beginning balances and post transactions inpart a)
c) Prepare the shareholder's equity section of the Balance Sheetat Dec 31, 2017, including any required disclosures. Assume Conwayis under ASPE

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4.1 Ratings (750 Votes)

02.01.2017			bank account		dr	6600000
			To prefernce share capital a/c				6600000

31.03.2017			dividend ac/c		dr	1.5
			To Bank Account a/c				1.5

18.04.2017			bank account a/c		dr	325000
			To Share capital a/c				325000
			(250000*1.3)

30.06.2017			dividend ac/c		dr	1.5
			To Bank Account a/c				1.5

30.09.2017			dividend ac/c		dr	1.5
			To Bank Account a/c				1.5

31.12.2017			dividend a/c		dr	1.5
			To Bank Account a/c				1.5

31.12.2017			Retained Earnings a/c		dr	160000
			To Profit and loss a/c				160000


			share capital equity account account
	date	debit	amount	date	credit	amount
	02.01.2017	bank	6600000	01.01.2017	op balance	1650000
	18.04.2017	bank	325000	31.12.2017	closing balance	5275000

			6925000			6925000

				conway ltd
		Balance sheet as on 31 january 2017

		liabilities		amount $
		share capital
		Authorised Capital

		Issued and paid up Capital		6925000

		retained earnings		550000
		add:profit for the year		160000
				710000

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In: AccountingOn January 1, 2017, Conway Ltd. had the following shareholders'equity accounts:Common shares, unlimited number...On January 1, 2017, Conway Ltd. had the following shareholders'equity accounts:Common shares, unlimited number of shares authorized, 1.5million issued - $1,650,000Retained earnings- 550,000It was also authorized to issue an unlimited number of $6noncumulative preferred shares. During 2017, the corporation hadthe following transactions and events related to its shareholders'equity:Jan 2 Issued 100,000 preferred shares at $66 per shareMarch 31 Paid quarterly dividend to preferred shareholdersApril 18 Issued 250,000 common shares at $1.30 eachJune 30 Paid quarterly dividend to preferred shareholdersSept 30 Paid quarterly dividend to preferred shareholdersDec 31 Paid quarterly dividend to preferred shareholdersDec 31 Profit for the year was $160,000a) Journalize the transactions and the entries to closedividends and the Income Summary accountb) Open general ledger accounts for the shareholder's equityaccounts, enter the beginning balances and post transactions inpart a)c) Prepare the shareholder's equity section of the Balance Sheetat Dec 31, 2017, including any required disclosures. Assume Conwayis under ASPE