21, Nkana Plc issued 80 million K1 preferred shares at a premium of K0.5 each. Issue Costs totalled K1.5 millio
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Question 1
On 1st January 2021, Nkana Plc issued 80 million K1
Required:
Show how these shares will be reported in the financial Statements of Nkana plc for the years 2021 to 2025. Nkana plc’s year-end is 31st December.
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- Question no 3The market price of the ordinary shares at 31 December 2020 was Rs1.60. The dividend yield on ordinary shares was 2.5 per cent. The creditor for taxation at 31 December 2019 was Rs25 000. Taxation paid in the year ended 31 December 2020 amounted to Rs22 000. The liability for taxation on the profit of the year ended 31 December 2020 is Rs31 000 and is carried forward on the Taxation account. The retained profit for the year ended 31 December 2020 was Rs60 000. The debentures were issued in 2016. The preference shares were issued at par. The summarized Balance Sheet at 31 December 2020 of Iqra Ltd was as: Fixed assets 2550000, Net current assets 950000, 6% debentures 2019/2020 150000, Ordinary shares of Rs1, 2500000, 10% redeemable preference shares of Rs1, 300000, Share Premium account 200000 Profit and Loss Account 350000. REQUIRED Prepare Iqra Ltd’s Profit and Loss Account for the year ended 31 December 2020 in as much detail as possible. The Profit and Loss Account…Follow Up Question Pilsen Company issues 12% bonds with a face value of $10,000 and 600 shares of $10 par common stock in a combined sale, receiving total proceeds of $23,000 on December 31.Required:Record the transaction for each independent assumption shown: 2.The common stock has a current market value of $24.50 per share; the bonds are selling at 98. Can you please explain the calculation and the concept for 'premium on common stock'? 23,000 * 14,700 ($24.5 * 600 shares) / $24,500 (what is this, how do you get this?) - $6,000 ThanksQuestion 8 At the end of 2020, Diego Corporation reported a $40,000 balance in its common share account (stated value $5 per share). The treasury share account showed $720 (cost $6 per share). No dividends were paid during the first two years. During 2020 the company declared and paid a cash dividend at $1.50 per share. Calculate the total amount of the 2020 cash dividend.
- Journal entry worksheet 1 Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2021, the company's board of directors declares a 20 percent stock dividend. This stock dividend will be distributed on January 20, 2022 to the stockholders of record on January 15, 2022. The ...market price of the company's stock is $10 per share on December 31 2021 Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Retained earnings Common stock dividend distributable Paid in capital in excess of par value Clear entry View general journal Record entry AssessmeQ2. On 1 July 2020 Farfalle pc had 5 million £1 ordinary shares in issue. On 1 September2020, Farfelle made a bonus issue of 1 for 2. Its profit after tax for the year ended 30 June 2021 is £3.8m. An ordinary dividend of £1.8m was paid(i) Calculate the earnings for year ended 30 June 2021(ii) Calculate basic EPS for the year ended 30 June 2021 to the nearest penceQUESTION 2Naruto Bakery has a capital structure consisting of:42,000 issued and paid-up ordinary shares RM105,0005,000 issued and paid-up 10% Preference shares RM15,0008% Bonds (10-year maturity) RM30,000The balance of retained earning as at 1 January 2021 was RM75,000. The market priceper unit of the company’s financial instruments are as follows:Ordinary shares : RM2.50 (last dividend paid was RM0.50; growth rate is 5%Preference shares : RM3.008% Bonds : RM890.00 (par value RM1,000)The company is considering to invest in new project worth RM80,000. The floatationcost to sell more shares and bonds are 5%. The corporate tax rate 25%.You are required to calculate (show all workings):b. The company’s cost of debt, preference share, retained earnings and newissuance of ordinary shares.
- At 31 December 2021 Wyndhams calculated its basic earnings per share as 30 pence per share, based on earnings of £900,000 and 3 million £1 ordinary shares. It has a tax rate of 25%. In addition to the ordinary shares, Wyndham has £3m of 4% convertible loan stock. This is convertible any time from 1 January 2021 – 31 December 2022 at a rate of 1 ordinary share for each £5 of loan stock. None had been converted by the year end. a) Calculate the diluted EPS for year ended 31 December 2021. Answer to one decimal place Wyndhams issued £2m 8% convertible preference shares on 1 January 2021, convertible between January 2024 and January 2025 at a rate of 1 ordinary share per £5 of preference shares. b) Combine the information on the convertible loan stock and the convertible preference shares to calculate the diluted EPS for year ended 31 December 2021. Answer to one decimal placeProblem 2 At December 31, 2019, Morgan Corp. had 2,000,000 ordinary shares outstanding. On January 1, 2020, Morgan issued 500,000 preference shares, which were convertible into 1,000,000 ordinary shares. During 2020, Morgan declared and paid P1,500,000 cash dividends on the ordinary shares and P500,000 cash dividends on the preference shares. Net income for the year ended December 31, 2020 was P5,000,000. Assuming an income tax rate of 32%, how much is the basic and diluted earnings per share for the year ended December 31, 2020?On I January x1, Annie Bhd issued 25 million, 4% redeemable preference shares at RMl each redeemable at a premium of 18%, on 31 December x4. The effective interest rate is 8% and the interest rate is 31 December. The market price of the shares in years x1 to x4 is shown below: RM 31 December xl 31 December x2 1.06 1.10 31 December x3 112 31 December x4 118 Required: Discuss the accounting treatment where the preference shares are measured at amortised cost
- PART 1 EQUITY At 30 June 2021, the equity of Bourne Ltd comprised share capital of $29,880,000 (comprising 5,000,000 ordinary shares issued and paid to $6.00 per share, less share issue costs of $120,000), general reserve of $250,000, retained earnings of $2,500,000. The following transactions and events occurred during the year ending 30 June 2022: ● On 6 July 2021 a dividend of $420,000 was paid. This dividend had been declared on 29 March 2021 by the Directors from retained earnings (and had not required any further approval/authorisation). ● On 1 August 2021 the directors made a bonus share issue of 1 ordinary share issued and paid to $6.00 for every 100 shares held. This was made using the total amount in the general reserve, with the remainder from retained earnings. ● On 2 February 2022, the Directors declared and paid an interim dividend of $320,000 from retaining earnings. . On 29 June 2022, the Directors declared a dividend of 8 cents per share from retained earnings. This…Question 6 On June 1, 2020, Ping Corp. purchased 10,000 of Pong’s 50,000 outstanding shares at a price of P6.00 per share. Pong had earnings of P3,000 per month during 2020 and paid dividends of P10,000 on March 1, 2020 and P12,500 on December 1, 2020. The fair value of Pong’s shares was P6.50 per share on December 31, 2020. Which statement is correct? Group of answer choices Assuming that the investment is FVTOCI, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P7,500. Assuming that the investment is an associate, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P3,600. After all closing entries for 2020 are completed, the effect of the increase in fair value on total shareholders' equity would be the same amount under the FVTOCI and FVTPL approaches. Assuming that the investment is FVTPL, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P2,500.
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