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Problem 12-6A Share transactions, dividends, statement of changes in equity LO2,3,4,5,6 The balance...

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Accounting

Problem 12-6A Share transactions, dividends, statement of changes in equity LO2,3,4,5,6
The balance sheet for Umi Sustainable Seafood Inc. reported the following components of equity on December 31,2022.
In 2023, Umi had the following transactions affecting shareholders and the equity accounts:
Jan. 5 The directors declared a $4.00 per share cash dividend payable on Feb. 28 to the
Feb. 5 shareholders of record.
Feb. 28 Paid the dividend declared on January 5.
July 6 Sold 1,150 common shares at $39.20 per share.
Aug. 22 Sold 1,650 common shares at $28.00 per share.
Sept. 5 The directors declared a $4.00 per share cash dividend payable on October 28 to the
October 5 shareholders of record.
Oct. 28 Paid the dividend declared on September 5.
Dec. 31 Closed the $348,000 credit balance in the Income Summary account.
31 Closed the Cash Dividends account.
Required:
Prepare journal entries to record the transactions and closings for 2023. The company uses a Cash Dividends account when
dividends are declared.
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