Talize Inc. has the following balances at December 31, 2014, its year end: Preferred Shares, $4.25 cumulative (dividends in arrears for 2013 and 2014) $1,250,000 100,000 shares authorized, 25,000 issues and outstanding Common Shares, unlimited authorized, 2,500,000 shares outstanding 4,500,000 Retained Earnings 5,000,000 During 2015: Jan 2 Issued 20,000 common shares in exchange for machinery fair valued at $40,000. The common shares had a market value of $1.80 per share May 5 All required dividends were declared on preferred shares and a $.20 common share cash dividend was declared on common. Dividends will be distributed on Jan 2 2016. Separate both share classes. July 15 Retired 5,000 preferred shares at $58 per share Sept 25 Talize issued 2,000 preferred shares and 1,000 common shares to an investor for $100,000. At the issue date, the market value of the preferred shares was $45 per share and the market value of the common shares was $6 per share Oct 31 Talize declared and issued a 5% share dividend on the common shares. The market value of the shares at declaration date was $3.00 per share Required: Journalize all the transactions for 2015 Prepare, in good form, the Shareholders’ Equity section of the balance sheet at its year end, December 31, 2015. Net income for 2015 was $520,000. Total comprehensive income for 2015 was $650,000 which includes net income plus a gain of $130,000 of foreign exchange gains caused by foreign subsidiary. Use a proper three-line title.
Talize Inc. has the following balances at December 31, 2014, its year end:
100,000 shares authorized, 25,000 issues and outstanding
Common Shares, unlimited authorized, 2,500,000 shares outstanding 4,500,000
During 2015:
Jan 2 Issued 20,000 common shares in exchange for machinery fair valued at $40,000.
The common shares had a market value of $1.80 per share
May 5 All required dividends were declared on preferred shares and a $.20 common share cash dividend was declared on common. Dividends will be distributed on Jan 2 2016. Separate both share classes.
July 15 Retired 5,000 preferred shares at $58 per share
Sept 25 Talize issued 2,000 preferred shares and 1,000 common shares to an investor for $100,000. At the issue date, the market value of the preferred shares was $45 per share and the market value of the common shares was $6 per share
Oct 31 Talize declared and issued a 5% share dividend on the common shares. The market value of the shares at declaration date was $3.00 per share
Required:
- Journalize all the transactions for 2015
- Prepare, in good form, the Shareholders’ Equity section of the balance sheet at its year end, December 31, 2015. Net income for 2015 was $520,000. Total comprehensive income for 2015 was $650,000 which includes net income plus a gain of $130,000 of foreign exchange gains caused by foreign subsidiary. Use a proper three-line title.
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