ACCT 1000/2210 Module 10 – Class Presentation

10-1B – Equity transactions, Statement of Changes in Shareholders’ Equity

The December 31, 2023 shareholders’ equity section of Kamala Co.’s balance sheet is shown
below:

Preferred shares, $2 cumulative, 1,000 issued $25,000

Common shares, 10,000 issued 150,000
Retained earnings 200,000
Total shareholders’ equity $375,000

The following equity transactions occurred during 2024:

Jan 15 Issued 1,000 common shares for a piece of land with a fair value of $16,000.
Mar 21 Issued 100 preferred shares for $3000 cash.
August 1 Declared the regular cash dividend on preferred shares.
August 10 Paid the regular cash dividend on preferred shares.
November 8 Declared and issued a 10% stock dividend on common shares at a time when the
market price was $18 per share.

Required:
a.) Journalize the transactions above.
b.) Assuming net income for the year was $50,000, prepare the statement of changes of
shareholders’ equity for the year ended December 31, 2024.
ACCT 1000/2210 Module 10 – Class Presentation