University of Toronto Shareholders Equity Excel Task


problem 1

The unappropriated distribute excellent of Marginal Utility Corporation consists of 6,000 preferred distributes delay a capacity treasure of $420,000 and 22,000 niggardly distributes delay a capacity treasure of $220,000. The preferred distributes convey a dividend of $6 per distribute and bear a $70 orderly treasure.

Required: Assuming that the fraternity has retained hues of $340,000 that is to be wholly remunerated out in dividends and that preferred dividends were not remunerated during the two years precedent the prevalent year, set-forth how considerable each tabulate of distributes should entertain inferior each of the aftercited conditions:

a) The preferred distributes are non-cumulative and non-participating. b) The preferred distributes are cumulative and non-participating. c) The preferred distributes are cumulative and participating.

Problem 2

The aftercited axioms were charmed from the Pit Shuffle accounts of Apple Corporation on December 31, 2010:

$2,200,000 2,040,000

Current Assets Investments, FV-NI Niggardly Shares (no par treasure, no signed

Limit, 300,000 distributes effectd and

Outstanding) Contributed Surplus Retained Hues


660,000 1,820,000

Required: Prepare the required life entries for the aftercited not allied items:

a) A 4% store dividend is apparent and nice at a occasion when the distributes'

negotiate treasure is $42 per distribute. b) A 5-for-1 store rend is done. c) A dividend in husk is apparent on January 5, 2011, and remunerated on February 15,

2011, in bonds that were tabulateified as FV-NI. The bonds bear a conveying treasure of $100,000 (resembling to consume) and a impartial negotiate treasure of $160,000.

Problem 3 (20 Marks)

On January 2, 2011, Blueman Corporation was incorporated in the individuality of Ontario. It was signed to effect an infinite reckon of no-par treasure niggardly distributes, and 25,000 distributes of no-par, $8, cumulative and non-participating preferred. During 2011, the secure completed the aftercited transactions:

Jan 8 Accepted donations for 34,000 niggardly distributes at $12 per distribute. Down

acquittal entertaind on the subscribed distributes was 50%. Jan 30 Issued 10,000 preferred distributes in vary for the aftercited assets:

machinery delay a impartial negotiate treasure of $50,000, a factory delay a impartial negotiate

treasure of $200,000, and place delay an appraised treasure of $120,000. Mar 15 Machinery delay a impartial negotiate treasure of $85,000 was donated to the fraternity. Apr 25 Collected the pit of the donations receivable on solely 30,000 distributes

and effectd niggardly distributes. A customer lapseed on the conclusive acquittal on a donation for 4,000 distributes. The fraternity system is to effect the symmetry

remunerated up to age for customers that lapse. June 30 Purchased 2,200 niggardly distributes at $18 per distribute. The distributes were retired. Dec 31 Apparent suited specie dividends to yield a $1 per distribute dividend for

unappropriated niggardly distributes. The dividend is payable on January 10,

2012, to distributeholders of archives on January 5, 2012. Dec 31 Closed the allowance abstract to retained hues. The allowance for the conclusion

was $225,000.


1. (16 Marks) Prepare the life entries to archives the aloft transactions. 2. (4 Marks) Prepare the distributeholders' equity individuality of the pit shuffle for

Blueman Corporation at December 31, 2011.