4.5Hudson plc's outline statement of financial position as at a particular date was as follows:£m72Net assets (assets less liabilities)EquityOrdinary sharesGeneral reserveTotal equity403272The directors made a one-for-four bonus issue, immediately followed by a one-for-four rightsissue at a price of £1.80 per share.Required:Show the statement of financial position of Hudson plc immediately following the two share issues.

The statement of financial position of Hudson plc immediately following the two share issues would…

Answered: 4.5 Hudson plc's outline statement of…

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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5. Magenta Corporation declared $0.70 per share cash dividends on September 18. The dividends were recorded and paid on September 23 and September 29, respectively. Magenta Corporation had 50,000 shares outstanding with par value of $1. The journal entry to record the transaction on September 29 is … a. Cash Dividends $35,000 Dividends Payable $35,000 b. No journal entry required on this date c. Retained Earnings $50,000 Cash Dividends $50,000 d. Dividends Payable $35,000 Cash $35,000
9A. How much is the excess of par to be used for book value per share computation? 9B. How much is the BOOK VALUE PER SHARE for PREFERENCE shares considering that the preference shares are cumulative and participating? (Present answer in 2 decimal places, example: XX.XX) On December 31, 2021, the statement of financial position of FRUITS Company showed the following shareholders equity accounts: • Ordinary shares, par P50, authorized 100,000 shares, issued 85,000 shares, in treasury 7,500 shares - P4,250,000 12% Preference shares, par P75, authorized 50,000 shares, issued 20,000 shares, in treasury 4,000 shares-P1,500,000 Share premium in excess of par-P 862,500 . Reserve for Treasury shares - 725,000 • Treasury ordinary shares-435,000, Treasury preference shares-P 290,000 • Retained earnings, unrestricted-P 2,168,000 Net income for the year - 762,000 Cash dividends declared - P 194,000; 2 years in arrears, current year is not yet included.
Before Riverbed Ltd. engages in the treasury share transactions listed below, its general ledger reflects, among others, the following account balances (par value is £30 per share). Share Premium-Ordinary Share Capital-Ordinary £91,700 £269,400 Retained Earnings (a) Bought 390 treasury shares at £39 per share. (b) Bought 300 treasury shares at £45 per share. (c) Sold 350 treasury shares at £41 per share. (d) Sold 100 treasury shares at £37 per share. £81,900 Record the treasury share transactions (given below) under the cost method of handling treasury shares; use the FIFO method for purchase-sale purposes. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Star Ltd. presents the following information from the Statement of Financial Position: Equity £ Capital (120, 000 shares of £1 120,000 each) Retained Profits Share premium Total Equity 22,000 50,000 192,000 Star Ltd. issues 20, 000 ordinary shares for a price of £2. Considering the previous information and the economic transaction of issuing ordinary shares, which of the following statements is correct? O a. The company increases cash in £20,000 and share premium decreases in the same amount. O b. The company decreases cash in £40,000 and total equity remains unchanged. O c. The company increases cash in £40,000 and equity increases in the same amount. O d. None of the answers is true.

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