- Shiloh’s Entertainment has the following Shareholders’ Equity as of January 1, 2018:
Preferred Shares, 8% cumulative, 10,000 issued, 50,000 authorized $ 500,000
Common Shares, 250,000 issued, unlimited authorized 1,000,000
Contribution Surplus – Common Shares 45,000
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Retained Earnings 2,500,000
Accumulated Other Comprehensive Income 150,000
During the year the following transactions occurred:
- A buyback of 5,000 common shares at a market value of $50 per share;
- A 10% common stock dividend was declared and paid at a market value of $49 per share;
- A 2:1 common share stock split was declared and paid, after the split the market valve of a share was $25;
- Issued 5,000 common shares at a market value of $27 per share and there was a $5,000 legal fee associated with the issuance;
- Bought a piece of specialized equipment with a fair value of by issuing 5,000 common shares at a market price of $26 per share.
Required: Based on the above information
- Prepare ALL the journal entries for the year pertaining to Shiloh’s Shareholders’ Equity;
- Complete the Shiloh’s 2018 Changes to Shareholders’ Equity (denoting number of shares outstanding for both Preferred and Common Shares).