CORPORATE TRANSACTIONS
AMG Inc. had the following balances in its shareholders' equity at the beginning of the current year:
Common shares (no par value, 9,000 shares, unlimited authorized) $ 180,000
Retained earnings 92,000
Total shareholders' equity $272,000
During the year the following transactions took place:
• Purchased and cancelled 1,000 shares of own stock at $17 per share
• Issued 7,000 shares at $20 per share
• Declared a 10% stock dividend, market price $21 per share
• Paid the stock dividend
• Declared a 4 to 1 stock split
Required:
a. Prepare the journal entries to record the transactions.
b. Determine the number of shares outstanding.
c. Prepare the Shareholder’s Equity section of the Statement of Financial Position. Year end is December 31st.