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

question 44

Essay

The following is an extract from the balance sheet as at December 31,2017:

The company did not declare dividends on preferred shares in 2016.Transactions in 2017 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.
Required:
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:

Manufacturing Cycle Efficiency

A metric that measures the efficiency of the manufacturing process by comparing the value-added production time to the total production time.

Non-value-added Time

Time spent in the production process that does not contribute to the end product's value or quality, often targeted for reduction in lean manufacturing practices.

Throughput Time

The amount of time it takes for a product to pass through a production process, from start to finish, including processing, inspection, and transit times.

Desirable

Something that is wanted or wished for because it is considered attractive, satisfying, or beneficial.