133) The shareholders' equity of Orion Corporation as of December 31, 2010, follows:
Preferred shares, $3, noncumulative 8,000 shares
authorized, 3,000 shares issued$ 157,500
Common shares, unlimited shares authorized,
80,000 shares issued 1,000,000
Total contributed capital1,157,500
Retained earnings 405,800
Total shareholders' equity $1,563,300
Orion Corporation completed the following transactions during 2010:
Mar. 5Declared the required annual cash dividend on preferred shares and a $0.40 per share cash
dividend on the common shares.
26Paid the cash dividend that was declared on March 5.
May 2Purchased 3,000 of its own common shares for $17.50 per share.
Jul. 5The board of directors announced a 2-for-1 stock split on the common shares.
Dec. 31Closed out the income summary account with a credit balance of $287,000.
Prepare the shareholders' equity section of the balance sheet of Orion Corporation as of December 31, 2010. Do not prepare journal entries for the above transactions.
134) Prepare journal entries for the following transactions for Broadbent Corporation:
Jun. 10Broadbent Corporation purchased 2,000 of its common shares for $25 per share.
The original issue price was $21 per share
Aug. 15Broadbent Corporation sold 800 of the repurchased shares for $30 per share.
Oct. 30Broadbent Corporation sold the remaining repurchased shares for $22 per share.
