The Following Is an Extract from the Balance Sheet as at December

question 26

Essay

The following is an extract from the balance sheet as at December 31,1011:
at $6 per share,250,000 authorized,25,000 issued and outstanding
The company did not declare dividends on preferred shares in 2011.Transactions in 2012 include the following:
i.March 15: Hewitt purchased 15,000 preferred shares on the stock exchange for $5.25 per share and held these in treasury.
ii.March 28: The company redeemed 5,000 preferred shares directly from shareholders.
iii.July 1: The market price of common shares shot up to $5 per share,so Hewitt decided to split the common shares two to one.
iv.August 1: Hewitt cancelled 14,000 preferred shares that were held in treasury.
v.December 31: The company declared dividends of $0.40 per common share.
Requirement:
Prepare the journal entries to record the above transactions.The company uses the single-transaction method to account for treasury shares.

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Definitions:

Mature Follicles

Follicles in the ovary that are fully developed and capable of releasing an egg during ovulation.

Secondary Follicles

Stages in the development of ovarian follicles, marked by an accumulation of fluid and further growth after the primary follicle stage.

Primary Follicles

Early stage follicles in the ovary, consisting of an oocyte surrounded by a single layer of granulosa cells.

Perimetrium

The outermost layer of the uterus, composed of a thin layer of tissue that covers the exterior of the uterus.