The general ledger of Maggio Corporation a publicly

traded company #8679

The general ledger of Maggio Corporation a publicly traded company

The general ledger of Maggio Corporation, a publicly traded company, contained the following
shareholders' equity accounts in 2012:

A review of the accounting records for the year ended December 31, 2012, reveals the following
information:

1. On March 1, 20,000 no par value common shares were sold for $17.50 per share. An
unlimited number are authorized.

2. On August 18, a 6% common stock dividend was declared for 16,500 shares when the share
price was $18. The stock dividend was distributed on September 25.

3. The preferred shares are $4 cumulative no par value. An unlimited number of preferred
shares are authorized. The quarterly preferred shareholders' dividend was declared and paid in
2012 for each quarter.

4. Profit for the year was $750,000.

5. On December 31, the directors authorized a $200,000 restriction on retained earnings in

accordance with a debt covenant.

Instructions

(a) Reproduce the Preferred Shares, Common Shares, Contributed Capital, and Retained
Earnings general ledger accounts for the year.

(b) Prepare the shareholders' equity section of the statement of financial position at December
31, including any required note disclosure.

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 The general ledger of Maggio Corporation a publicly traded company

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