Question 4. at the beginning of the year LKS ltd has the following balances share capital Common shares up to a max 3,000,000 authorized 800,000 shares issued at average price per share $4 cumulative Preferred shares up to a max 60,000 shares issued at the average share price Retained earnings opening balance $6 500000 authorized $120 the following transactions occur during the year a) the board declares a cash dividend of $800,000 2-May (the company failed to pay last years preferred dividend) b) the company pays the cash dividend 9-May c) the company does a 3:1 stock split to increase the marketability of the shares d) the company issues 10,000 600,000 (Common only) 14-May 29-May $4 preferred shares to the accountant to cover Repair expenses of e) the company makes a net income of 800,000 $200,000 Create the entry to close the income summary on May 31
Question 4. at the beginning of the year LKS ltd has the following balances share capital Common shares up to a max 3,000,000 authorized 800,000 shares issued at average price per share $4 cumulative Preferred shares up to a max 60,000 shares issued at the average share price Retained earnings opening balance $6 500000 authorized $120 the following transactions occur during the year a) the board declares a cash dividend of $800,000 2-May (the company failed to pay last years preferred dividend) b) the company pays the cash dividend 9-May c) the company does a 3:1 stock split to increase the marketability of the shares d) the company issues 10,000 600,000 (Common only) 14-May 29-May $4 preferred shares to the accountant to cover Repair expenses of e) the company makes a net income of 800,000 $200,000 Create the entry to close the income summary on May 31
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 13E
Related questions
Question
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning