Blitz Power Tongs Inc. received a charter that authorized it to issue an unlimited number of common shares. The following transactions were completed during 2016:
|
Jan. |
5 |
Issued 10 common shares for a total of $150 cash. |
|
12 |
Exchanged 50 shares of common shares for assets listed at their fair values: machinery – $100; building – $100; land – $50. |
|
|
Feb. |
28 |
Declared a 10% share dividend. Market value is $7 per share. Net income to date is $60. |
|
Mar. |
15 |
Issued the share dividend. |
|
Dec. |
31 |
Closed the 2016 net income of $200 from the Income Summary account in the general ledger to the Retained Earnings account. |
|
Dec. |
31 |
Declared a $1 per share cash dividend. |
Required:
- Prepare journal entries for the 2016 transactions, including closing entries.
- Prepare the shareholders’ equity section of the balance sheet at
- January 31, 2016
- February 28, 2016
- December 31, 2016.
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