Question

Steering Corporation, a publicly traded company, is authorized to issue 196,000 $4 cumulative preferred shares and an unlimited number of common shares. On January 1, 2018, the general ledger contained the following shareholders’ equity accounts:

Preferred shares (8,700 shares issued)	$469,800
Common shares (67,900 shares issued)	1,086,400
Contributed surplus	27,000
Retained earnings	877,000
Accumulated other comprehensive income	10,900

The following equity transactions occurred in 2018:

Feb.	6		Issued 9,000 preferred shares for $549,000.
Apr.	6		Issued 19,400 common shares for $572,300.
	27		Reacquired and retired 2,800 common shares at $18 per share.
May	29		Declared a semi-annual cash dividend to the preferred shareholders of record at June 12, payable July 1.
Aug.	22		Issued 8,700 common shares in exchange for a building. At the time of the exchange, the building was valued at $157,800 and the common shares at $142,000.
Dec.	14		The board of directors decided there were insufficient funds to declare the semi-annual dividend to the preferred shareholders.
	31		Net income for the year was $556,000.

Record the above transactions, including any entries required to close dividends and net income. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round average cost per share to 2 decimal palces, e.g. 2.25 and final answers to 0 decimal places.)

Date	Account Titles and Explanation	Debit	Credit
Feb. 6	Cash	549,000
	Preferred Shares		549,000
Apr. 6	Cash	572,300
	Common Shares		572,300
Apr. 27	Common Shares	53,200
	Contributed Surplus		2,800
	Cash		50,400
May 29	Dividends Declared	35,400
	Dividends Payable		35,400
June 12	No Entry	0
	No Entry		0
July 1	Dividends Payable
	Cash
Aug. 22	Buildings	157,800
	Common Shares		157,800
Dec. 14	No Entry	0
	No Entry		0

Closing entries:

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	Income Summary	556,000
	Retained Earnings		556,000
	(To close net income/(loss).)
Dec. 31	Retained Earnings
	Dividends Declared
	(To close dividends.)

Open T accounts and post to the shareholders’ equity accounts. (Record entries in the order presented in the problem.)
- Preferred Shares

- Common Shares

- Retained Earnings

- Contributed Surplus

- Dividends Declared

- Accumulated other Comprehensive Income

Prepare the shareholders’ equity section of the statement of financial position at December 31. (Enter account name only and do not provide descriptive information.)

Answer 1