BBUS 2211 #7
Assignment #7
P13-7A (a)
General Journal
Date
A/C Title
Ref
Debit
Credit
Feb 6
Cash
111,000
Preferred Shares (1,000 x $111)
111,000 To record issue of 50,000 preferred shares at $111
July 15
Preferred Shares (2,000 x $106) 212,000
Common Shares
212,000 To record conversion of 2,000 preferred shares into 16,000 common shares at average cost of $106
Aug 22
Cash
62,000
Preferred Shares (500 x $124)
62,000 To record issue of 500 preferred shares at $124
Nov 1
Preferred Shares (1,000 x $108)
108,000
Common Shares
108,000
To record conversion of 1,000 preferred shares into 8,000 common shares at average cost of $108
Dec 31
Service Revenue
600,000
Income Summary
600,000
To close revenue to income summary
31
Income Summary
540,000
Operating Expenses
540,000
To close expenses to income summary
31
Income Summary
60,000
Retained Earnings
60,000
To close income summary ( 600,000-540,000 ) to retained earnings
(b)
Preferred Shares
Common Shares
Retained Earnings
212,000
525,000
1,050,000
300,000
108,000
111,000
212,000
60,000
62,000
108,000
378,000
1,370,000
360,000
Contributed capital
Accumulated other comprehensive income
18,750
25,000
18,750
25,000
Calculation Only:
# of Preferred Shares
# of Common Shares
2,000
5,000
70,000
1,000
1,000
16,000
500
8,000 3,500
94,000
(c)
Denison Corporation
Balance Sheet (partial)
31-Dec-08
Shareholders' equity
P13-7A (a)
General Journal
Date
A/C Title
Ref
Debit
Credit
Feb 6
Cash
111,000
Preferred Shares (1,000 x $111)
111,000 To record issue of 50,000 preferred shares at $111
July 15
Preferred Shares (2,000 x $106) 212,000
Common Shares
212,000 To record conversion of 2,000 preferred shares into 16,000 common shares at average cost of $106
Aug 22
Cash
62,000
Preferred Shares (500 x $124)
62,000 To record issue of 500 preferred shares at $124
Nov 1
Preferred Shares (1,000 x $108)
108,000
Common Shares
108,000
To record conversion of 1,000 preferred shares into 8,000 common shares at average cost of $108
Dec 31
Service Revenue
600,000
Income Summary
600,000
To close revenue to income summary
31
Income Summary
540,000
Operating Expenses
540,000
To close expenses to income summary
31
Income Summary
60,000
Retained Earnings
60,000
To close income summary ( 600,000-540,000 ) to retained earnings
(b)
Preferred Shares
Common Shares
Retained Earnings
212,000
525,000
1,050,000
300,000
108,000
111,000
212,000
60,000
62,000
108,000
378,000
1,370,000
360,000
Contributed capital
Accumulated other comprehensive income
18,750
25,000
18,750
25,000
Calculation Only:
# of Preferred Shares
# of Common Shares
2,000
5,000
70,000
1,000
1,000
16,000
500
8,000 3,500
94,000
(c)
Denison Corporation
Balance Sheet (partial)
31-Dec-08
Shareholders' equity