FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Mady Entertainment Inc. showed the following equity account balances on the December 31, 2022, balance sheet Common shares, unlimited authorized shares, 640, 000 shares
issued and outstanding Retained earnings $5, 760, 000 2, 130, 000 During 2023, the following selected transactions occurred: Apr. 1 Repurchased and retired 168,000 common shares
at $10.00 per share; this is the first retirement recorded by Mady. June 1 Declared a 2:1 share split to shareholders of record on June 12, distributable June 30. Dec. 1 Declared a 10%
share dividend to shareholders of record on December 10, distributable December 20. The market prices of the shares on December 1, December 10, and December 20 were $
7.00, $6.76, and $6.90, respectively. 20 Distributed the share dividend declared December 1. 31 Closed the credit balancs of $756, 000 in the Income Sumary account. Required: a.
Journalize the transactions above (assuming the retirements were the first ever recorded by Mady Entertainment Inc). The company does not use a share dividends account. (If no
entry is required for a transaction/event, select "No journal entry required" in the first account field.) \table[[Date, Note Disclosure,Amount], [April 01, 2023,, ], [June 01, 2023,, ], [
December 01, 2023,, ], [December 20, 2023,, ], [December 31, 2023,, ]] b. Prepare the equity section on the December 31, 2023, balance sheet. \table[[MADY ENTERTAINMENT INC.
], [Equity Section of Balance Sheet,], [December 31, 2023, ], [Contributed capital:,], [Common shares, unlimited shares authorized, 1, 038, 400 shares issued and outstanding,], [Retained
earnings,], [, $
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Transcribed Image Text:Mady Entertainment Inc. showed the following equity account balances on the December 31, 2022, balance sheet Common shares, unlimited authorized shares, 640, 000 shares issued and outstanding Retained earnings $5, 760, 000 2, 130, 000 During 2023, the following selected transactions occurred: Apr. 1 Repurchased and retired 168,000 common shares at $10.00 per share; this is the first retirement recorded by Mady. June 1 Declared a 2:1 share split to shareholders of record on June 12, distributable June 30. Dec. 1 Declared a 10% share dividend to shareholders of record on December 10, distributable December 20. The market prices of the shares on December 1, December 10, and December 20 were $ 7.00, $6.76, and $6.90, respectively. 20 Distributed the share dividend declared December 1. 31 Closed the credit balancs of $756, 000 in the Income Sumary account. Required: a. Journalize the transactions above (assuming the retirements were the first ever recorded by Mady Entertainment Inc). The company does not use a share dividends account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) \table[[Date, Note Disclosure,Amount], [April 01, 2023,, ], [June 01, 2023,, ], [ December 01, 2023,, ], [December 20, 2023,, ], [December 31, 2023,, ]] b. Prepare the equity section on the December 31, 2023, balance sheet. \table[[MADY ENTERTAINMENT INC. ], [Equity Section of Balance Sheet,], [December 31, 2023, ], [Contributed capital:,], [Common shares, unlimited shares authorized, 1, 038, 400 shares issued and outstanding,], [Retained earnings,], [, $
Date
April 01, 2023
June 01, 2023
December 01, 2023
December 20, 2023
December 31, 2023
Note Disclosure
ROTORCHE
Total equity
Amount
b. Prepare the equity section on the December 31, 2023, balance sheet.
MADY ENTERTAINMENT INC.
Equity Section of Balance Sheet
December 31, 2023
Contributed capital:
Common shares, unlimited shares authorized, 1,038,400 shares issued and outstanding
Retained earnings
0
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Transcribed Image Text:Date April 01, 2023 June 01, 2023 December 01, 2023 December 20, 2023 December 31, 2023 Note Disclosure ROTORCHE Total equity Amount b. Prepare the equity section on the December 31, 2023, balance sheet. MADY ENTERTAINMENT INC. Equity Section of Balance Sheet December 31, 2023 Contributed capital: Common shares, unlimited shares authorized, 1,038,400 shares issued and outstanding Retained earnings 0
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