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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.…Please help meJB Ltd was incorporated on 1 July 2021 and issued a prospectus inviting applications for 200,000 ordinary shares at an issue price of $10. The shares are payable as follows: $5 payable on application $2 payable on allotment ● ● ● ● $3 payable on call to be made 30th September 2021 Share issue costs were $10,500 and legahcosts were $1,500 The transactions for the period were as follows: Date Transaction 31/08/2021 Applications were received for 260,000 shares. 3/09/2021 Applications for 60,000 were rejected by the directors and the application money was refunded to the shareholders concerned. The Company allotted 200,000 shares to the remaining applicants All the allotment money s received. Share issue and legal costs were paid in cash The call was made on the shares, payable by 31 October 2021 Call money was received from the shareholders of only 180,000 shares The remaining 20,000 shares were forfeited. The forfeited shares were offered to an investment company at a price of $8 per…
- All of the following occurred in 2019. A Plc has 3,500,000 shares in issue on 1st January. On 1st April, a further 300,000 shares were issued in the market. Later in the year, on 1st November, the company bought back 100,000 shares. On the 10th December, a 3 for 1 stock split came into effect. The net income for the year was €17,000,000 and the company paid €1,600,000 in preferred dividends. In the notes disclosures relating to granting of options and warrants: 1,050,000 Stock options, exercise price €30 900,000 Warrants, exercise paid €33 (the option and warrant exercise prices have been adjusted to reflect the stock split). Over the year, the company’s average share price was 40€. Calculate the basic and diluted EPS and show all your workings. If the company hadn’t issued stock options and warrants but had given equity upside through the preferred shares being convertible into 100,000 ordinary shares. What would the diluted EPS be now?15. The following data were taken from the accounts of Miami Heat Corporation as at December 31, 2019: Total net income since incorporation P 840,000 Proceeds from sale of donated shares 90,000 Scrip dividends declared payable on Jan. 5, 2020 65,000 Ordinary share capital dividend distributable 60,000 Excess of proceeds over cost from sale of treasury shares What should be the balance of the Retained Earnings as of December 31, 2019? ______________1. Edguy Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of P10 par value at P15 per share. The entity was authorized to issue 400,000 ordinary shares. During the period January 1, 2019 through December 31, 2020, the entity reported net income of P750,000 and paid cash dividend of P380,000. On January 5, 2020, the entity purchased 12,000 ordinary shares at P12 per share. On December 31, 2020, 8,000 treasury shares were sold at P8 per share and the remaining treasury shares were retired. The entity used the cost method of accounting for treasury shares. What amount should be reported as total shareholders' equity on December 31, 2020? * Your answer
- On February 2019, Sean Company began operations by issuing at P15 per share 50% of the 950,000 ordinary shares of P1 par value that had been authorized for issue. In addition, the entity had 500,000 authorized preference shares of P5 par value. During 2019, the entity had P1,025,000 of net income and declared P230,000 of dividend. During 2020, the entity had the following transactions: Issued 100,000 ordinary shares for P17 per share. Issued 150,000 preference shares for P8 per share. Authorized the purchase of a custom-made machine to be delivered in January 2-021. The entity restricted P300,000 of retained earnings for the purchase of the machine. Issued additional 50,000 preference shares for P9 per share. Reported P1,215,000 of net income and declared on December 31, 2020 a dividend of P635,000 to shareholders of record on January 15, 2021 to be paid on February 1, 2021. What account must be debited as a result of the declaration of dividends in 2019On 1 July 2021, Mel Ltd took control of the assets and liabilities of Syd Ltd. At this date the statement of financial position of Syd Ltd was as follows: Required Prepare the journal entries in the records of Mel Ltd at 1 July 2021 in each of the following situations, assuming the costs of issuing the shares by Mel Ltd cost $1600. Mel Ltd issued 80 000 shares having a fair value of $2.40 per share in exchange for the net assets of Syd Ltd Mel Ltd issued 80 000 shares having a fair value of $2.00 per share in exchange for the net assets of Syd Ltd. Mel Ltd acquired the shares of Syd Ltd. The agreement was that Mel Ltd would pay the shareholders of Syd Ltd one share in Mel Ltd for every two shares held in Syd Ltd plus $1 in cash for each share held in Syd Ltd. Shares in Mel Ltd have a fair value of $1.80 per share.4. ABC Co. issued a prospectus for the issue of 900,000shares at $6 per shares on 1 January 2019. The prospectus specified that $3.50 was payable on application, a further $1.25 was payable on allotment and the final $1.25 was payable at call. On 31 January 2019 ABC issued 300,000 shares. On 31 May 2019, the company made the call for the outstanding balance of $1.25 per share. The call was payable by 30 June 2019. At 30 June 2019, the call on 30,000 shares remained unpaid.Instructions:b) The Share Capital that would appear in the Balance Sheet of ABC Co. (2marks)