The owners' equity section for Syarikat Hatchi Chemical Berhad as at 1 January 2021 are asfollows:During 2021, the following transactions have occurred:13 March25 Jime8% Non-cumulative preference shares (35,000 units)Equity Shares (100,000 units)Retained Earnings30 July1 Sept15 Oct10 NovRequired:alC)d)RM700,000100,0001,105,000Issued 30,000 units of equity sharesfor cash at RM1.50 per share.Purchased a piece of land by paying RM250,000 cash and issued 25,000 unitsof 8% cumulative preference shares. The market price of the shares on that daywas RM12 per share.The Compan earned a net income of RM200,000 for the financial year ended December 31,2021Declared a cash dividend of RM100,000 to all preference and equityshareholders Business records show the company did not pay any cashdividend to preference shareholders in 2020.Declared a share dividend of 1 unit of equity sharefor every 10 units of equityshares issued as at this date. The market price of the equity shares as of thisdate was RM1.80 per shareMade cash dividendpan ments and share dividend distributionsIssued 25,000 units of equity shares to purchase two processing machinesvalued at RM20,000 each.Prepare the journal entries to record the transactions and net income.Show the calculation and distribution of cash dividend to all shareholders.Prepare the owner's equiry section in the statement offinancial position as at December31, 2021.Explain THREE (3) differences between equity share and preference share

Share holders Equity Shareholders equity which consist of equity and preference shares which are…

al b) C) d) Prepare the journal entries to record the transactions and net income. Show the calculation and distribution of cash dividend to all shareholders. Prepare the owners' equity section in the statement offinancial position as at December 31, 2021 Explain THREE (3) differences between equity share andpreference share

al b) C) d) Prepare the journal entries to record the transactions and net income. Show the calculation and distribution of cash dividend to all shareholders. Prepare the owners' equity section in the statement offinancial position as at December 31, 2021 Explain THREE (3) differences between equity share andpreference share

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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When using the equity method of accounting, when is revenue recorded on the books of the investor company?a. When the fair value of the affiliate stock increases.b. When a dividend is received from the affiliate.c. When the affiliate company reports net income.d. Both b and c above.
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Spicer Inc. showed the following alphabetized list of adjusted account balances at December 31, 2023. Assume that the preferred shares are non-cumulative. Accounts Payable Accounts Receivable Accumulated depreciation, Equipment Accumulated depreciation, Warehouse Cash Cash Dividends Common Shares Equipment Income Tax Expense Land Notes Payable, due in 2026 Operating Expenses Preferred Shares Retained Earnings Revenue Warehouse Current assets $ 26,760 40,200 11,140 22,280 9,400 20,600 Required: Prepare a classified balance sheet at December 31, 2023. (Enter all amounts as positive values.) Assets 122,000 79,400 41,600 127,600 34,600 110,200 40,200 28,720 282,100 138,800 SPICER INC. Balance Sheet December 31, 2023 K
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Required Indicate the effect of each of the following transactions on (1) the current ratio, (2) working capital, (3) stockholders' equity, (4) book value per share of common stock, and (5) retained earnings. Assume that the current ratio is greater than 1:1 (Indicate the effect of each transaction by selecting "+" for increase, "-"for decrease, and leave the cell blank if there is no effect.). a. Collected account receivable. b. Wrote off account receivable. c. Converted a short-term note payable to a long-term note payable. d. Purchased inventory on account. e. Declared cash dividend f. Sold merchandise on account at a profit. g. Issued stock dividend h. Paid account payable. i. Sold building at a loss. Retained Value Earnings Current Working Stockholders Book Ratio Capital Equity
On March 1, 2020, what will the correct journal entry be? a) Dr. Cash Dividends: Cr. Dividends Distributable b) Dr. Cash: Cr. Common Shares & Preferred Shares c) Dr. Retained Earnings: Cr. Dividends Distributable d) Dr. Cash: Cr. Contributed Capital e) None of the above