In groups, you will provide the journal entry to record issuing of


 

In groups, you conquer prepare the chronicle entrance to chronicles issuing of spiritless accumulation distributes by a fortification, chronicles issuing of cumulative preferred accumulation, and chronicles a avowal of accumulation disunite.

Group Project:

Company A

During 2013, Assembly A has the forthcoming actions involving its spiritless and preferred accumulation:

  • Issued 20,000 distributes of $8 par spiritless accumulation for $26 a distribute; brings sum distributes uncollected to 50,000 distributes
  • Issued 6,000 distributes of $100 par, 6%, cumulative preferred accumulation for $150 per distribute
  • When communicate esteem of the spiritless accumulation reached $15 a distribute, Assembly A manifest a 3-for-1 accumulation disunite, reducing the par esteem to $188 per distribute

The forthcoming is required:

  1. Prepare a chronicle entrance for each action.
  2. Discuss the suitable of distributeholders of cardinal accumulation for assembly A that they are entitled to.
  3. Company A is formed as a fortification and for-this-reason, its distributeholders keep poor jurisdiction. Limited jurisdictionmeans that accumulationholders can simply induce the totality of their investment. Discuss how this poor jurisdiction affects a fortification.

Company B

Company B began 2013 delay a $110,000 equalize in retained rights. The forthcoming events occurred during the year:

  • Cash dividends of $18,500 were manifest.
  • 4,500 distributes of callable preferred accumulation were recalled and private for a compensation of $225 per distribute. The accumulation was originally issued for $150 per distribute.
  • Net proceeds was $550,000.
  • A symbolical fault in net proceeds for a former time was corrected. The punishment of the fault decreased retained rights by $18,500 succeeding a allied proceeds tax.

The forthcoming is required:

  1. Prepare the proposition of retained rights for the year ended 2013, and any hush disclosures individually.
  2. Discuss the incapability of retained rights that the table of directors can lay and why it would be requisite.