Please show the procedures briefly Zen Aerospace Corporation reported the follow
ID: 2544595 • Letter: P
Question
Please show the procedures briefly
Zen Aerospace Corporation reported the following equity account balances on December 31, 2016: Preferred shares, $3.60 cumulative, unlimited shares authorized Common shares, unlimited shares authorized 29,000 shares issued and outstanding Retained Earnings 800,400 342,000 In 2017, the company had the following transactions affecting shareholders and the shareholders' equity accounts: Jan. 1 Purchased and retired 3,800 common shares at $36 per share. 14 The directors declared a 10% share dividend distributable on February 5 to the January 30 shareholders of record. The shares were trading at $47.40 per share. 30 Date of record regarding the 10% share dividend. Feb. 5 Date of distribution regarding the 10% share dividend. July 6 Sold 6,800 preferred shares at $78 per share Sept. 5 The directors declared a total cash dividend of $48,017 payable on October 5 to the September 20 shareholders of record Oct. 5 The cash dividend declared on September 5 was paid. Dec. 31 Closed the $483,600 credit balance in the Profit Summary account to Retained Earnings. 31 Closed the dividend accounts. Required 1. Prepare journal entries to record the transactions and closings for 2017 (assume the retirements were the first ever recorded by Zen Aerospace). transaction/event, select "No journal entry required" in the first account field.)Explanation / Answer
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Date Particulars Dr. Cr. Jan 1 Equity Share Capital (3800*27.60) 104,880.00 Retained Earnings (3800*8.40) 31,920.00 To Bank (3800*36) 136,800.00 Jan 14 Dividend (29000-3800)*(27.60*0.10) 69,552.00 To dividend payable 69,552.00 Feb 5 Dividend Payable 69,552.00 To bank 69,552.00 Juy 6 Bank (6800*78) 530,400.00 To Preferrence Share Capital (6800*3.6) 24,480.00 To Securities Premium 505,920.00 Sept 5 Dividend 48,017.00 To dividend payable 48,017.00 Oct 5 Dividend Payable 48,017.00 To bank 48,017.00 Dec 31 Profit & Loss Account 483,600.00 To Retained Earnings 483,600.00 Dec 31 Retained Earnings (69552+48017) 117,569.00 To dividend 117,569.00