Determine the balance of share premium to be reported in statement of financial position for the year ending December 31, 2021
At the beginning of the year 2021, Tenth Incorporated reported the following accounts:
|
Ordinary Share Capital, 5 par |
15 million |
|
5% |
7 million |
|
Share Premium |
9 million |
|
Treasury Shares, 74,500 ordinary shares |
894,000 |
|
|
8.9 million |
The following transactions transpired during the year:
- Issued 250,000 ordinary shares at 7.5 per share and 13,500 preference shares for a total of 681,750.
- Issued 22,500 treasury shares to the public for a total of 303,750
- Net income during the period amounts to 340,000
- Cash Dividends declared during the year was; 0.45 per ordinary share and the annual dividends of the preference shares. These were distributed on May 1, 2022. The financial statements were authorized for issue on March 31, 2022.
- Inventories are recorded at its cost of 1,400,000 in the
-
Ignore income tax effects.
Determine the balance of share premium to be reported in statement of financial position for the year ending December 31, 2021
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