Question 4. at the beginning of the year LKS ltd has the following balances share capital Common shares up to a max 3,000,000 authorized 800,000 shares issued at average price per share $4 cumulative Preferred shares up to a max 60,000 shares issued at the average share price Retained earnings opening balance $6 500000 authorized $120 the following transactions occur during the year a) the board declares a cash dividend of $800,000 2-May (the company failed to pay last years preferred dividend) b) the company pays the cash dividend 9-May c) the company does a 3:1 stock split to increase the marketability of the shares d) the company issues 10,000 600,000 (Common only) 14-May 29-May $4 preferred shares to the accountant to cover Repair expenses of e) the company makes a net income of 800,000 $200,000 Create the entry to close the income summary on May 31
Question 4. at the beginning of the year LKS ltd has the following balances share capital Common shares up to a max 3,000,000 authorized 800,000 shares issued at average price per share $4 cumulative Preferred shares up to a max 60,000 shares issued at the average share price Retained earnings opening balance $6 500000 authorized $120 the following transactions occur during the year a) the board declares a cash dividend of $800,000 2-May (the company failed to pay last years preferred dividend) b) the company pays the cash dividend 9-May c) the company does a 3:1 stock split to increase the marketability of the shares d) the company issues 10,000 600,000 (Common only) 14-May 29-May $4 preferred shares to the accountant to cover Repair expenses of e) the company makes a net income of 800,000 $200,000 Create the entry to close the income summary on May 31
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 13E
Related questions
Question
![Question 4.
at the beginning of the year
LKS ltd has the following balances
share capital
Common shares up to a max
3,000,000 authorized
800,000 shares issued at average price per share
$4 cumulative Preferred shares up to a max
60,000 shares issued at the average share price
Retained earnings opening balance
$6
500000 authorized
$120
the following transactions occur during the year
a) the board declares a cash dividend of
$800,000
2-May
(the company failed to pay last years preferred dividend)
b) the company pays the cash dividend
9-May
c) the company does a 3:1 stock split to increase the marketability of the shares
d) the company issues
10,000
600,000
(Common only)
14-May
29-May
$4 preferred shares to the accountant to cover Repair expenses of
e) the company makes a net income of
800,000
$200,000 Create the entry to close the income summary on May 31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd517105e-ceeb-4fca-883b-f5a6f860e8b7%2Fc4f5bd17-1df4-44e1-bb15-5b6421a89215%2Fpy1hv5_processed.png&w=3840&q=75)
Transcribed Image Text:Question 4.
at the beginning of the year
LKS ltd has the following balances
share capital
Common shares up to a max
3,000,000 authorized
800,000 shares issued at average price per share
$4 cumulative Preferred shares up to a max
60,000 shares issued at the average share price
Retained earnings opening balance
$6
500000 authorized
$120
the following transactions occur during the year
a) the board declares a cash dividend of
$800,000
2-May
(the company failed to pay last years preferred dividend)
b) the company pays the cash dividend
9-May
c) the company does a 3:1 stock split to increase the marketability of the shares
d) the company issues
10,000
600,000
(Common only)
14-May
29-May
$4 preferred shares to the accountant to cover Repair expenses of
e) the company makes a net income of
800,000
$200,000 Create the entry to close the income summary on May 31
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