FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Crane Ltd. began operations on January 2, 2024. During the year, the following transactions affected shareholders' equity:

1. Crane's articles of incorporation authorize the issuance of 2.5 million common shares and the issuance of 253,000 preferred shares, the latter of which pay an annual dividend of $3.0 per share.

2. A total of 303,000 common shares were issued for $6 a share,

3.

A total of 35,000 preferred shares were issued for $10 per share.

4. The full annual dividend on the preferred shares was declared.

5. The dividend on the preferred shares was paid.

6. A dividend of $0.12 per share was declared on the common shares but was not yet paid.

7. The company had net income of $170,000 for the year. (Assume sales of $500,000 and total operating expenses of $330,000.)

8. The dividends on the common shares were paid.

9. The closing entry for the Dividends Declared account was prepared.

Prepare journal entries to record the above transactions, including the closing entries for net income and dividends declared.
No. Account and Explanation
1.
2.
3.
4.
5.
6.
7.
8.
9.
TQ *
(To close revenue account.)
(To close expense account.)
(To close net income.)
Debit
||||
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Transcribed Image Text:Prepare journal entries to record the above transactions, including the closing entries for net income and dividends declared. No. Account and Explanation 1. 2. 3. 4. 5. 6. 7. 8. 9. TQ * (To close revenue account.) (To close expense account.) (To close net income.) Debit |||| Credit
Prepare the shareholders' equity section of the statement of financial position as at December 31, 2024.
Crane Inc.
Statement of Financial Position (Partial)
>
tA
tA
III
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Transcribed Image Text:Prepare the shareholders' equity section of the statement of financial position as at December 31, 2024. Crane Inc. Statement of Financial Position (Partial) > tA tA III
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