The following information relates to River Valley Produce Limited as at December 31, 2016:
The following transactions occurred during 2017:
|
a. |
Reacquired 400 common shares at $10 each; held as treasury shares. |
|
b. |
Split the common shares 2 for 1. |
|
c. |
Issued an additional 200 common shares for $3 cash each. |
|
d. |
Transferred net income of $19,500 from the Income Summary account in the general ledger to the Retained Earnings account. |
|
e. |
The board authorized a $5,000 of retained earnings to be restricted for plant expansion.* |
*complete only if Appendix 2 is covered
Required:
- Prepare journal entries for the 2017 transactions.
- Prepare the statement of changes in equity for the year ended December 31, 2017.
- What amount of is available for distribution to shareholders as of December 31, 2017?
- 1054 reads
