question archive Sheffield Corporation is authorized to issue an unlimited number of $5 cumulative preferred shares and an unlimited number of common shares
Sheffield Corporation is authorized to issue an unlimited number of $5 cumulative preferred shares and an unlimited number of common shares
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Sheffield Corporation is authorized to issue an unlimited number of $5 cumulative preferred shares and an unlimited number of common shares. On February 1, 2020, the general ledger contained the following shareholders' equity accounts:
| Preferred shares (10,000 shares issued) | $450,000 | ||
| Common shares (51,000 shares issued) | 612,000 | ||
| Retained earnings | 712,000 |
The following equity transactions occurred during the year ended January 31, 2021:
| Feb. | 28 | Issued 5,100 preferred shares for $270,300. | |
| Apr. | 12 | Issued 190,000 common shares for $2.47 million. | |
| May | 25 | Issued 5,100 common shares in exchange for land. At the time of the exchange, the land was valued at $61,200. | |
| Jan. | 1 | Paid dividend of $2.50 per share to preferred shareholders. | |
| Jan. | 31 | A loss of $58,000 was incurred for the year. |
Journalize the transactions and the entries to close dividends and the Income Summary account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
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Date |
Account Titles and Explanation |
Debit |
Credit |
|
Feb. 28Apr. 12May 25Jan. 1Jan. 31 |
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| (To record issuance of shares.) | |||
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Feb. 28Apr. 12May 25Jan. 1Jan. 31 |
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| (To record issuance of shares.) | |||
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Feb. 28Apr. 12May 25Jan. 1Jan. 31 |
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| (To record issuance of shares.) | |||
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Feb. 28Apr. 12May 25Jan. 1Jan. 31 |
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| (To record declaration and payment of dividend.) |
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Feb. 28Apr. 12May 25Jan. 1Jan. 31 |
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| (To close Income Summary.) | |||
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Feb. 28Apr. 12May 25Jan. 1Jan. 31 |
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| (To close dividends.) |
eTextbook and Media
List of Accounts
Open general ledger accounts for the shareholders' equity accounts and post entries from previous part. (Post entries in the order of Journal entry presented in the previous part (a).)
|
Preferred Shares |
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|
Date |
Explanation |
Ref. |
Debit |
Credit |
Balance |
|
Feb. 1 |
Balance |
√ |
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Feb. 28 |
J1 |
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|
Common Shares |
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|
Date |
Explanation |
Ref. |
Debit |
Credit |
Balance |
|
Feb. 1 |
Balance |
√ |
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Apr. 12 |
J1 |
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May 25 |
J1 |
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Cash Dividends—Preferred |
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|
Date |
Explanation |
Ref. |
Debit |
Credit |
Balance |
|
Jan. 1 |
J1 |
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|
Jan. 31 |
Closing entry |
J1 |
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|
Retained Earnings |
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|
Date |
Explanation |
Ref. |
Debit |
Credit |
Balance |
|
Feb. 1 |
Balance |
√ |
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|
Jan. 31 |
Closing Entry |
J1 |
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Jan. 31 |
Closing Entry |
J1 |
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eTextbook and Media
List of Accounts
Prepare the shareholders' equity section of the balance sheet at January 31, 2021, including any required disclosures. Assume Sheffield is reporting under ASPE and there were no preferred dividend arrears at January 31, 2020. (Enter account name only and do not provide descriptive information.)
| SHEFFIELD CORPORATION Balance Sheet (Partial) Quarter Ended January 31, 2021January 31, 2021Year Ended January 31, 2021 |
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| Total Shareholders' EquityContributed CapitalShare CapitalCurrent LiabilitiesShareholders' EquityTotal Share CapitalTotal Current Liabilities | ||
| Contributed CapitalShare CapitalTotal Shareholders' EquityCurrent LiabilitiesTotal Share CapitalShareholders' EquityTotal Current Liabilities | ||
| $ | ||
| Contributed CapitalTotal Current LiabilitiesTotal Shareholders' EquityShare CapitalShareholders' EquityCurrent LiabilitiesTotal Share Capital | ||
| Contributed CapitalShare CapitalTotal Share CapitalTotal Shareholders' EquityShareholders' EquityCurrent LiabilitiesTotal Current Liabilities | $ | |
eTextbook and Media
List of Accounts
