At 30 June 2014 the capital and reserves of Meredith, a limited liability company were Sm Share capital Ordinary shares of $1 each Share premium account 100 80 During the year ended 30 June 2015, the following transactions took place. -1 September 2014 A bonus issue of one ordinary share for every tvo held, using the share premium account. -1 January 2015 A fully subscribed rights iSsue of two ordinary shares for every tive held at that date, at $1 50 per share. What would the balances on each account be at 30 June 2015 A. Share Capital $210m, Share premium account $110m B. Share Capital $240m Share premium account $80m C. Share Capital $210m Share premium account 610m D. Share Capital $240m Share premium account $30m

At 30 June 2014 the capital and reserves of Meredith, a limited liability company were Sm Share capital Ordinary shares of $1 each Share premium account 100 80 During the year ended 30 June 2015, the following transactions took place. -1 September 2014 A bonus issue of one ordinary share for every tvo held, using the share premium account. -1 January 2015 A fully subscribed rights iSsue of two ordinary shares for every tive held at that date, at $1 50 per share. What would the balances on each account be at 30 June 2015 A. Share Capital $210m, Share premium account $110m B. Share Capital $240m Share premium account $80m C. Share Capital $210m Share premium account 610m D. Share Capital $240m Share premium account $30m

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

ctions On January 23, 15,000 shares of Aurora Company's common stock are acquired at a price of $25 per share plus a $140 brokerage commission. On April 12, a $0.35-per-share dividend was received on the Aurora Company stock. On June 10, 5,200 shares of the Aurora Company stock were sold for $31 per share less a $115 brokerage commission. At the end of the accounting period on December 31, the fair value of the remaining 9,800 shares of Aurora Company's stock was $30 per share. Aurora Company has 190,000 shares of common stock outstanding. Required: Journalize the entries for the original purchase, dividend, sale, and change in fair value under the fair value method. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. When required, round your answers to…
Cervantes Corporation in Madrid, Spain is authorized to issue an unlimited number of ordinary shares and 100,000 €6 cumulative preference shares (i.e., a fixed amount of €6 cash dividend is distributed per share before any dividend-distribution to ordinary shares). At January 1, 2018, it had the following opening equity balances: – Preference shares: nil– Ordinary Shares: 300,000 shares issued, €1.8 million– Additional Contributed Capital: €50,000– Retained Earnings: €1,150,000– Accumulated Other Comprehensive Income: €50,000. During the year ended December 31, 2018, the company had the following share transactions: Jan. 10 Issued 100,000 ordinary shares at €8 per share.July 1 Issued 20,000 preferred shares at €50 per share.Sept. 1 Declared 5% share dividends to ordinary shareholders of record on September 15, distributable September 30. The price of the ordinary shares was €10 per share on September 1, €12 per share on September 15, and €11 per share on September 30.Nov. 1 Issued…
Sizzle Company shareholders' equity at the beginning of 2010 is shown at the table below: Ordinary Share capital, USD20 authorized 50,000 shares; issued and outstanding 30,000 shares par value, USD600,000 Ordinary Share premium USD150,000 Retained earnings USD230,000 In addition, during the year, these transactions happened: а. 2,500 shares were repurchased as treasury shares at a price of USD28 per share. b. share. 500 treasury shares were sold at a price of USD32 700 shares of treasury shares were sold at a price of USD24 per share. per с. d. Sizzle Company reported a net income of USD120,000 for the current year. Please calculate the balance of the Share Premium – Treasury Shares account of Sizzle Company after recoding all these transactions. Show complete solution and explanation.
Top Cat Pte Limited On 1 April 20x0, the first day of the new financial year, Top Cat Pte Limited's share capital comprised 75,000 ordinary shares (issued and outstanding) with a paid-up capital of $750,000. Retained earnings was $150,000. During the year, the following transactions with owners occurred. Prepare the journal entries to record the following transactions. Where no journal entry is required, state why. -1 April 20x0 Issued 5,000 additional ordinary shares for $11 each. -1 June 20x0 Share registry dividend record date. -15 June 20x0 Declared a cash dividend of $1.50 per share to ordinary shareholders. -10 July 20x0 Paid the $1.50 cash dividend. -1 December 20x0 Issued 3,000 additional ordinary shares for $13 per share. -15 March 20x1 Share registry record date. -31 March 20x1 Profit before tax for the period was $340,000 and the company income tax rate is 17%. -31 March 20x1 Declared a cash dividend to ordinary shareholders of $1.80 per share. -As at 31 March 20x1, how…
The investment accounts maintained by Dexter Company were shown below: Available for Sale Securities - Y Company Ordinary Date Particulars 01-01-2020 Beginning Balance, 3,000 shares 36,000 01-12-2020 2 for 1 share split ( market price after the share split is P7) 12,000 03-17-2020 Sold 1,000 shares at P8 8,000 10-01-2020 Purchased 2,000 additional shares of Y Ordinary at P8 per share plus transaction costs of P0.50 per share 17,000 11-30-2020 Sold 1,000 shares at P8.50 8,500 12-31-2020 Adjustment to fair value (FV is P9.20 per share.) 6,700 Financial Assets at Fair Value through Profit or Loss 0 B Company 06-30-2020 Received a dividend of 1 share of B Company ordinary for every 5 shares of Y Company Ordinary. Market price on this date of B Company Ordinary is P2.50. The shares have par value of P1. 1,000 09-10-2020 Sold 500 shares for P2.80 per share 1,400 12-31-2020 Adjustment to market; fair value is P3.20 per share 2,000 Additional Information: • You traced the…
Aalwyn Ltd was incorporated with authorized share capital consisting of 800 000 10% preference shares of $ 2 each and 2 000 000 ordinary shares of N$1.50c each. 01 October 2019: The subscribers to the memorandum took and paid for 100 000 ordinary shares at par. During the year, 80% of the remaining ordinary shares and 500 000 preference shares were offered to the public as follows:  The ordinary shares were offered at a premium of 95c per share; and  The preference shares were offered at N$ 5.  01 March 2020: The offer for the subscription of shares opened to the public.  25 March 2020: The offer to the public was closed.  15 April 2020: Allotment of shares offered to public took place and all transactions with the underwriter were also concluded on this date. The issue is being underwritten for a commission of 8%. A total of 400 000 preference shares and 1 700 000 ordinary shares were applied for and the available shares were allotted and the necessary refunds made. The terms of…
Investments in Stocks--Equity Method or FVTOCI Financial Assets--Equity According to the statements, prepare the appropriate journał entries, and calculate the differences.. Tony Ltd. acquired 30% of the outstanding ordinary shares of Chang Company on January 1, 2018, by paying $900,000 for the 90,000 shares. Chang declared and paid $0.15 per share cash dividends on March 15, June 15, September 15, and December 15, 2018. Chang reported net income of $160,000 for the year. At December 31, 2018, the market price of Chang ordinary shares was $12 per share. Required: 1. Prepare the journal entries for Tony Ltd. for 2018, assuming Tony Ltd. cannot exercise significant influence over Chang, and Tony Ltd. made an irrevocable election to treat the equity investment as fair value through other comprehensive income. 2.: Prepare the journal entries for Tony Ltd. for 2018, assuming Tony Ltd. can exercise significant influence over Chang. Tadicate the statement of financial position and income…
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
The equity reserves of Carlo on 1 February 20X8 were as follows: Share capital Share premium Share capital ($1 shares) $43,000 Share premium $12,000Retained earnings $36,760 On 1 July 20X8, Carlo issued 2,000 shares in a bonus issue utilising the share premium account to fund the issue. On 1 November 20X8, Carlo issued 4,500 shares for $1.40 per share. What is the balance on the share capital and share premium after both share issues have taken place?
E14-4 Issuing shares payable by instalments [10–15 min] Riverside Ltd is issuing shares payable by instalments. It completed the following transactions: Received an application for 2000 ordinary shares with a total issue price of $10 per share. The applicant paid one-quarter of the total issue price. Allotted the 2000 shares and collected a further half of the total issue price. Made a call on the shares and collected the balance still due. May 3 May 18 Aug 3 Requirement Record these transactions in the general journal. Explanations aren't required.
Question(C) 1. On Septensber 1, 2015, Valdez Company reacquired 12,000 shares of ths$10par value ondinary shares for$15per share. Valdez uses the cost method to account for treasury shares. The joumal entry to record the reacquisition of the shares should debit a. Treasury Shares for$120,000. b. Share Capital-Ordinary for$120,000. c. Share Capital-Ordinary for$120,000and Share Premium-Ordinary for$60,000. 2. Long Co, issued 100,000 shares of$10par ordinary shares for$1,200,000. Long aequired 8,000 shares of its own shares at 515 per share. Three months later Long sold 4,000 of these shares at$19per share. If the cost method is used to record treasury shares transactions, to record the sale of the 4,000 treasury shares, Long should credit a. Treasury Shares for$76,000. b. Treasury Shares for$40,000and Share Premium-Treasury for$36,000. c. Treasury Shares for$60,000and Share Premium-Treasury Stock for$16,000. d. Treasury Shares for$60,000and Share Premium-Ordinary for$16,0003. Glavine…