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Problem 10-75A Statement of Shareholders' Equity At the end of 2017, Jeffco Inc. had the following equity accounts and balances: Common shares, no par (175,000 shares issued and $1,926,400 outstanding) Retained earnings 310,000 During 2018, Jeffco engaged in the following transactions involving its equity accounts: a. Issued 8,000 common shares for $35 per share. b. Issued 1,000 shares of 9%, $120 stated value preferred shares at $125 per share. C. Declared and paid cash dividends of $15,000. d. Repurchased and cancelled 500 common shares for $52 per share. Required: 1. Prepare the journal entries for a through d. For a compound transaction, for those boxes in which no entry is required, leave the box blank. a. 2018 Cash 280,000 Common Shares 280,000 (Record issue of common shares) b. Cash 125,000 0 Preferred Shares 0 120,000 Contributed Surplus-Preferred Shares 0 5,000 (Record issue of preferred shares) C. Retained Earnings (or Dividends) 15,000 Cash 15,000 (Record declaration and payment of dividends) d. Retained Earnings 20,000 X 0 Common Shares 6,000 X 0 Cash 0 26,000 (Record repurchase of common shares) Feedback 2. Assume that 2018 net income was $89,600. Prepare a partial statement of financial position showing only the sharehol Jeffco, Inc. Statement of Financial Position (Partial) December 31, 2018 Shareholders' equity: Preferred shares, 9%, $120 stated value 120,000 Common shares, no par 2,200,400 x Contributed surplus: Preferred shares 5,000 2,325,400 X Total capital stock Retained earnings 275,000 x Total shareholders' equity 2,690,000

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