80.2K

Verified Solution

Link Copied!

asap, please

On January 1, 2020, Sunshine International Inc.'s contributed capital consisted of common shares (1,000,000 shares authorized, 500,000 shares issued), and $3.00, cumulative preferred shares (100,000 shares authorized, 40,000 shares issued). There were no dividends in arrears pertaining to the preferred shares. During 2020, Sunshine International Inc. completed the following transactions: record June 30 Declared a cash dividend of $200,000. The date was July 15, and the payment date was July 31. July 31 Paid the cash dividends. September 15 Discovered an accounting error pertaining to $50,000 (before tax) of employee vacation pay for the 2019 fiscal year that had not been accrued at the end of 2019. Sunshine has a corporate income rate of 20%. November 1 Declared a 5% stock dividend on common shares. The market value of the common shares at the time was $9.00 per share. The record date was November 15, with the distribution set for December 1. December 1 Issued the stock dividend shares December 31 Reported $650,000 of net after-tax profit for the year. Required alize the noted above and any year closing are required. Please date your journal entries but explanations are not required. Show you calculations for part marks. Date Accounts - No explanations are required Debits Credits

Answer & Explanation Solved by verified expert

See Answer