On 1 June 2017, Whiting Technologies Ltd declared a $550 000 cash dividend to bedistributed to its shareholders of record on June 15, 2017 as follows: 25% to itspreferred shareholders and 75% to its ordinary shareholders.The dividend will be paid on 1 July 2017. The required journal entry on 1 Juneincludes a:$550 000 credit to dividends$550 000 credit to retained earnings$550 000 credit to dividends payable$550 000 credit to cash

Solution: Dividend is the amount of profits distributed to the stockholders by the company. When…

Answered: 1 June 2017, Whiting Technologies Ltd…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Select Ltd is registered with an authorised share capital of 300,000 ordinary shares of Ksh.1. The following trial balance was extracted from the books of the company on 31 March 2020, afterthe preparation of the tra ding асcount: Dr Kshs Kshs 200.000 Ordinary share capital, fully paid Land and buildings at cost Sundry debtors Fumiture and fittings at cost General expenses Sundry Creditors Stock at 31 March 2020 Bank Trading account: gross profit Office salaries and expenses Accumulated provision for depreciation on fumiture and fittings Share premium account Advertising and selling expenses Bad debts Provision for doubtful debts Profit andloss account Directors' fees 170.000 38.300 80.000 3.800 25.000 42.000 12.000 98.050 25.000 32.000 20.000 5.000 250 600 12.000 11.300 387,650 387,650 The following information is given: The provision for doubtful debtors is to be adjusted to Kshs 700. i. i. Depreciation is to be provided in respect of fumiture and fittings at 10% per annum on cost.…
C5.3
Compaq Ltd has a net income after tax of $2 000 000 for the year ended 30 June 2018. At the beginningof the period Compaq Ltd has 900 000 fully paid-up ordinary shares on issue. On 1 January 2018Compaq Ltd had issued a further 300 000 fully paid-up ordinary shares at an issue price of $2.00. On1 March 2018 Compaq Ltd made a one-for-five bonus issue of ordinary shares out of retained earnings.The last sale price of an ordinary share before the bonus issue was $2.50. At the beginning of thecurrent period Compaq Ltd also had 500 000, $1.00, 5% cumulative preference shares on issue. Thedividends on the preference shares are not treated as expenses in the statement of comprehensiveincome. The basic earnings per share for the period ended 30 June 2017 was $1.50 per share.Required:a) Calculate the basic EPS amount for 2018.

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