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 outstanding)||$1,926,400|
During 2018, Jeffco engaged in the following transactions involving its equity accounts:
- Issued 8,000 common shares for $35 per share.
- Issued 1,000 shares of 9%, $120 stated value preferred shares at $125 per share.
- Declared and paid cash dividends of $15,000.
- Repurchased and cancelled 500 common shares for $52 per share.
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.
|(Record issue of common shares)|
|Contributed Surplus-Preferred Shares|
|(Record issue of preferred shares)|
|c.||Retained Earnings (or Dividends)|
|(Record declaration and payment of dividends)|
|(Record repurchase of common shares)|
2. Assume that 2018 net income was $89,600. Prepare a partial statement of financial position showing only the shareholders’ equity section at December 31, 2018.
|Statement of Financial Position (Partial)|
|December 31, 2018|
|Preferred shares, 9%, $120 stated value||$|
|Common shares, no par|
|Total capital stock|
|Total shareholders’ equity|