Mana Inc Had the Following Balances in Its Shareholders' Equity at at the Beginning

question 9

Essay

Mana Inc. had the following balances in its shareholders' equity at the beginning of the current year (January 1, 2021):
Preferred shares ($ 1.50, cumulative*, 100,000 *two years of dividends are in arrears.
During the year ended December 31, 2021, the following transactions took place:
1. On January 1, issued 9,000 common shares at $ 18 per share.
2. On July 1, declared a 10% stock dividend on the common shares, market price $ 18.50 per share. The dividend is to be paid on August 15 to shareholders of record on July 31.
3. On August 15, the company paid the stock dividend.
4. On September 15, Ryder's board of directors declared a 4-for-1 stock split.
During the year, the company had a profit of $ 85,000.
Instructions
a) Prepare the journal entries to record the above transactions. Closing entries are not required.
b) Prepare a statement of changes in shareholders' equity for 2021.
c) Prepare the shareholders' equity section of the balance sheet at December 31, 2021.

---

Definitions:

Depression

This condition, defined by a consistently low emotional state or a lack of enthusiasm for activities, notably hinders regular daily activities.

Downward Social Comparison

A defensive tendency to compare oneself with someone whose troubles are more serious than one’s own.

Self-verification

The process through which individuals seek to confirm their self-concept by encouraging feedback that aligns with their existing beliefs and perceptions about themselves.

Biased Affective Forecasting

The tendency for people to inaccurately predict the intensity or duration of future emotional states, often underestimating the capacity to adapt to life changes.