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