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

question 11

Essay

The following is an extract from the balance sheet as at December 31,1011:
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 $15.25 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 $0.50 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:

Group Productivity

Denotes the collective output or accomplishment of a group, often measured in terms of quantity, quality, and efficiency of work produced.

Faulty Process

A procedure or operation that is flawed or dysfunctional, often leading to errors or failures in achieving its intended outcome.

Unitary Task

An assignment or job that requires a unified or singular effort, often focusing on a specific objective or goal.

Maximizing

The strategy of seeking the best possible outcome or the highest utility in decision-making.