Moreland Holdings Inc

question 3

Essay

Moreland Holdings Inc. has authorized share capital of an unlimited number of common shares and 1,000,000 preferred, $3-cumulative preferred shares. At January 1, 2014, the balances in its share capital accounts were $45,000 in common shares representing 15,000 shares and $30,000 in preferred shares representing 1,000 shares. The company had a balance of $50,000 in contributed surplus from previous years' repurchase of common shares. The retained earnings balance on that date was $180,000 and accumulated other comprehensive income was $62,000. Profit for the year ending December 31, 2014 was $24,000 and other comprehensive income items for the year were $5,000. There were no dividends in arrears at January 1, 2014 and no dividends were declared during 2014.
During 2014, Moreland had the following share transactions:
Mar 1 Issued 4,000 common shares for $5 each.
Jun 30 Issued 500 preferred shares for $11 each.
Sep 1 Issued 60,000 common shares in exchange for land valued at $285,000.
Dec 1 Reacquired 50,000 common shares for $5.25 each.
Instructions
a. Journalize the share transactions.
b. Prepare the equity section of Moreland's balance sheet at December 31, 2014 and describe any additional disclosure required related to share capital.

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Definitions:

Conception to Death

A phrase denoting the entire human life span, from the beginning of life at conception to its end at death.

Longitudinal Method

A research design that involves repeated observations of the same variables over short or long periods of time.

Developmental Psychology

Area of psychology in which the psychologists study the changes in the way people think, relate to others, and feel as they age.

Life Span

The maximum length of time an organism is expected to live, or the length of time an individual actually lives.