Business Administration 2257 Study Guide - Midterm Guide: Common Stock, Issued Shares, Retained Earnings

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Ian Dunn

Document Summary

The purpose of this case is to give you more practice dealing with equity transactions. Your job in this case is to do the following: record the necessary transactions, adjusting and closing entries for fairmont properties limited relating to the company"s formation, stock issuance and equity transaction for the year ending. December 31, 1999: prepare the shareholders" equity section of the statement of financial position as it would appear at the end of 1999. This tutorial will help you determine how to account for each of the equity transactions outlined in the case. If you have any questions, email your instructor. Fpl (fairmont properties limited) has authorization for two types of shares: 5,000,000 no par value, common shares, 150,000 no par value, . 50 annual cumulative, convertible, callable preferred shares. Each preferred share is callable at , and can be converted into three shares of common stock.