On January 1, 2021, the following information appears in the records of Brown Holdings Inc.:

During the year, the company had the following transactions:
Mar 31 Declared cash dividends on common shares of $ 0.50 per share; payable to shareholders of record on April 10, and payable on April 25.
Jun 30 Declared the entire annual dividend required on preferred shares; payable to shareholders of record on July 15, and payable on July 31.
Sep 15 Declared a 10% stock dividend to shareholders of record on October 5, and distributable on October 15.
All dividends were paid or distributed on the due date.
Market price of Brown's common shares at various dates was as follows:

At December 31, 2021 the accounting records indicate that Brown's profit for 2021 was $ 350,000 and other comprehensive income, consisting of a gain on fair value adjustments on equity investments was $ 28,000.
Instructions
a) Journalize the dividend transactions.
b) Prepare the statement of changes in shareholders equity for the year ended December 31, 2021.
c) Prepare the shareholders' equity section of Brown's balance sheet at December 31, 2021.

For the Year Ended December 31, 2021, Chess Corporation Reported

Essay

Correct Answer:Verified * Profit = $ 524,00...View AnswerUnlock this answer nowGet Access to more Verified Answers free of chargeView Full Answer For Free

Correct Answer:
Verified
* Profit = $ 524,00...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge