The shareholders’ equity section of the balance sheet of TWR Contracting Inc. at December 31, 2017 showed the following amounts:
The following transactions occurred during 2018:
|
Feb. |
15 |
Declared the regular $0.30 per share semi-annual cash dividend on its preferred shares and a $0.05 per share cash dividend on the common shares to holders of record March 5, payable April 1. |
|
Apr. |
1 |
Paid the dividends declared on February 15. |
|
May |
1 |
Declared a 10 per cent share dividend to common shareholders of record May 15 to be issued June 15, 2016. The market value of the common shares at May 1 was $2 per share. |
|
June |
15 |
Issued the dividends declared on May 1. |
|
Aug. |
15 |
Declared the regular semi–annual cash dividend on preferred shares and a cash dividend of $0.05 on the common shares to holders of record August 31, payable October 1. |
|
Oct. |
1 |
Paid the dividends declared on August 15. |
|
Dec. |
15 |
Declared a 10 per cent common share dividend to common shareholders of record December 20 to be issued on January 15, 2019. The market value of the common shares at December 15 was $3 per share. |
|
Dec. |
31 |
Net income for the year ended December 31, 2018 was $1,400. |
Required:
- Prepare journal entries to record the 2018 transactions, including closing entries. Show calculations. Descriptions are not necessary.
- Prepare the statement of changes in equity for the year ended December 31, 2018.
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