1 Question 5: 2 On January 1, 20x1, Raven Ltd. had 40,000 shares of common shares issued and outstanding. The book value of those shares was $600,000. Furthermore, they had 10,000 $3, cumulative, preferred shares issued and outstanding which had a book value of 3 $200,000. 6 The following transactions took place in 20x1: 7. 8 Feb 28 - Isued 20,000 common shares for $500,000 10 Jun 1-Repurchased and cancelled 20,000 shares at $20.00 each. 11 12 Jun 30 - A 2:1 stock split was announced 13 14 Dec 15- Declared a dividend of $2.00/share to shareholders of record on Dec 31. 15 16 Required- 17 18 Prepare all journal entries to record the above transactions. Round to two decimal points on any calculations.
1 Question 5: 2 On January 1, 20x1, Raven Ltd. had 40,000 shares of common shares issued and outstanding. The book value of those shares was $600,000. Furthermore, they had 10,000 $3, cumulative, preferred shares issued and outstanding which had a book value of 3 $200,000. 6 The following transactions took place in 20x1: 7. 8 Feb 28 - Isued 20,000 common shares for $500,000 10 Jun 1-Repurchased and cancelled 20,000 shares at $20.00 each. 11 12 Jun 30 - A 2:1 stock split was announced 13 14 Dec 15- Declared a dividend of $2.00/share to shareholders of record on Dec 31. 15 16 Required- 17 18 Prepare all journal entries to record the above transactions. Round to two decimal points on any calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1 Question 5:
2.
On January 1, 20x1, Raven Ltd. had 40,000 shares of common shares issued and outstanding. The book value of those shares was
$600,000. Furthermore, they had 10,000 $3, cumulative, preferred shares issued and outstanding which had a book value of
3 $200,000.
6 The following transactions took place in 20x1:
7.
8 Feb 28 - Issued 20,000 common shares for $500,000
9.
10 Jun 1- Repurchased and cancelled 20,000 shares at $20.00 each.
11
12 Jun 30 - A 2:1 stock split was announced
14 Dec 15 - Declared a dividend of $2.00/share to shareholders of record on Dec 31.
15
16 Required-
17
18 Prepare all journal entries to record the above transactions. Round to two decimal points on any calculations.
19
20
11L 1
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