Below is the shareholders'equity section of Samson Corporation's statement of financial position as at January 1,2019. Shareholders'equity: Ordinary shares,$5 per value,500000 shares authorized,120000 shares issued and outstanding $600000 share premium:ordinary shares 360000 retained earning 750000 During 2019,the following transactions occured in sequential order: (i) Samson issued for cash 100,000 ordinary shares at $12 per share. (ii) Samson issued for cash 8,000 of its 10,000 authorized 8% noncumulative preference. shares, $100 at par value, for $120 per share. (ii) Mr Kam bought 1,000 ordinary shares of Samson Corporation from Miss Cheung. (iv) Samson repurchased 1 000 of its own ordinary shares from the stock market for the treasury at a cost of $40,000. (v) Samson reissued 600 of these treasury shares for cash of $30,000, (vi) The board of directors declared a total dividend of S300.000. It was scheduled to be paid on March 31, 2020. Required: (Show all calculations and round ALL answers to 2 decimal places.) A. Prepare the journal entries for each of the above transactions for 2019 11a transaction does not require any entry, state”no entry”.(Explanation for the journal entry is NOT required) B. How many ordinary shares are outstanding? C. What was the dividend declared during the year on each share of ordinary shares? D. Explain how the transaction in (vi) alleets the corporation revenue or expense of the period and the effect on the shareholders equity.
Below is the shareholders'equity section of Samson Corporation's
Shareholders'equity:
Ordinary shares,$5 per value,500000 shares authorized,120000 shares issued and outstanding $600000
share premium:ordinary shares 360000
During 2019,the following transactions occured in sequential order:
(i) Samson issued for cash 100,000 ordinary shares at $12 per share.
(ii) Samson issued for cash 8,000 of its 10,000 authorized 8% noncumulative
shares, $100 at par value, for $120 per share.
(ii) Mr Kam bought 1,000 ordinary shares of Samson Corporation from Miss Cheung.
(iv) Samson repurchased 1 000 of its own ordinary shares from the stock market for the
treasury at a cost of $40,000.
(v) Samson reissued 600 of these treasury shares for cash of $30,000,
(vi) The board of directors declared a total dividend of S300.000. It was scheduled to be
paid on March 31, 2020.
Required:
(Show all calculations and round ALL answers to 2 decimal places.)
A. Prepare the journal entries for each of the above transactions for 2019 11a transaction
does not require any entry, state”no entry”.(Explanation for the
B. How many ordinary shares are outstanding?
C. What was the dividend declared during the year on each share of ordinary shares?
D. Explain how the transaction in (vi) alleets the corporation revenue or expense of the
period and the effect on the shareholders equity.
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