ABC Co. is authorized to issue 5,000,000, $6 par ordinary shares and 100,000, $50 par 9% cumulative preference shares. At the end of 2017, the company has the following equity accounts: Balance @ 31/12/2017 ($) Account Share capital-ordinary Share capital-preference Share premium-ordinary Share premium-preference Treasury shares Retained Earnings 1,800,000 1,000,000 400,000 500,000 320,000 2,000,000 Additional information: • There were 260,000 ordinary shares outstanding at 31/12/2017. • The company did not pay any preference dividends for the year 2017. The following equity transactions occurred during the year 2018 (in chronological drSHARE order). 1. Declared and paid the preference dividends in arrears by reissuing 10,000 treasury shares. 2. Issued 5,000 preference shares at $55 per share. 3. Sold 15,000 treasury shares at $9 per share. 4. Announced a 2 for 1 share split for ordinary shares 5. Declared and distributed a 5% share dividend to outstanding ordinary shareholders. Market price of the share was $15 per share. 6. Declared and paid the preference dividend for 2018. Required: For ABC Co.: Prepare the equity section of the statement of financial position at 31 December, 2018 (IN PROPER FORMAT]. Net income for the year was $800,000. (show all details and calculations)
ABC Co. is authorized to issue 5,000,000, $6 par ordinary shares and 100,000, $50 par 9% cumulative preference shares. At the end of 2017, the company has the following equity accounts: Balance @ 31/12/2017 ($) Account Share capital-ordinary Share capital-
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