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What is the balance in the common shares account on Dec

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    Assignment ID: FG133134540

    Question – Parsons Planes is a charter airline with a fleet of Metro planes. On Jan 1, 2019 it had 50000 common shares issued and outstanding, and a 300000 credit in the Common Shares account. On June 1, 2019 the company declared a 8% share dividend, distributable on June 30 to shareholders of record June 20. Shares were trading for $7 on June 1, $7.25 on June 15, and $7.3 on June 30. On August 1, Parsons issued another 12000 shares at $75 each. On Dec 31, Parsons declared and paid a cash dividend of $0.45 per share. Profit for the year was $45000.

    Required –

    a) Prepare all necessary journal entries for the above transactions, from June 1, 2019 to Dec 31, 2019

    b) Calculate the Earnings Per Share (EPS) for the year?

    c) What is the balance in the common shares account on Dec 31, 2019?

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