On January 1, 2014, the Following Information Appears in the Records

question 87

Essay

On January 1, 2014, the following information appears in the records of Boultin 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 Boultin's common shares at various dates was as follows: At December 31, 2014 the accounting records indicate that Boultin's profit for 2014 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, 2014.
c. Prepare the shareholders' equity section of Boultin's balance sheet at December 31, 2014.

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Definitions:

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost than competitors.

Opportunity Costs of War

The economic resources and benefits that are forgone by engaging in war, including the impact on trade, development, and the allocation of government spending.

International Trade

The international transfer of goods, services, and capital across national boundaries or regions.

Barriers to Free Trade

Restrictions, such as tariffs, quotas, and regulations, imposed by governments to control international trade and protect domestic industries.