1. Saskatoon Supermarket Ltd. can issue 50,000$3 cumulative preferred shares. The company's letters...
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1. Saskatoon Supermarket Ltd. can issue 50,000$3 cumulative preferred shares. The company's letters patent authorizes up to 500,000 common shares, and the corporation has 50,000 common shares outstanding with a book value of $226,000. Presently, no preferred shares are issued. The opening retained earnings equals $429,000. REQUIRED: 1) Record the journal entries needed to document the transactions from above. 2) Prepare a statement of changes in equity for the year ended December 31, 2021. (8 marks) 3) Prepare the equity seciton as it would be presented in the balance sheet as at December 31, 2021. (4 marks)
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1. Saskatoon Supermarket Ltd. can issue 50,000$3 cumulative preferred shares. The company's letters patent authorizes up to 500,000 common shares, and the corporation has 50,000 common shares outstanding with a book value of $226,000. Presently, no preferred shares are issued. The opening retained earnings equals $429,000. REQUIRED: 1) Record the journal entries needed to document the transactions from above. 2) Prepare a statement of changes in equity for the year ended December 31, 2021. (8 marks) 3) Prepare the equity seciton as it would be presented in the balance sheet as at December 31, 2021. (4 marks) 