Jackson Corporation was authorized to issue 20,000 shares of $50 par value ordinary shares and 3,000 shares of $100 par value, 5% cumulative preference shares. Shown below are some selected account balances for Jackson Corporation at 31 December 2020: Share Capital: Ordinary Share premium: ordinary Share Capital: Preference Share Share premium: Preference Retained eamings $500,000 $250,000 $300,000 $24,000 $650,000 During 2021, the following events occurred: 11 June Purchased 2,000 treasury shares at $65 per ordinary share. 10 Aug Reissued 1,000 treasury shares acquired on 11 June at a price of $70 per share. 31 Dec Declared dividend of $1 per ordinary share and 5% dividend for preference shares. Dividend will be payable in Jan 2022. Income statement for the year ended 31 December 2021 showed a net income of $259,000. Required a) Prepare the necessary entries for the above events. (No narratives required.) b) Prepare the shareholders' equity section of Jackson Corporation's statement of financial position at 31 December 2021 according to HKFRS requirements.

Jackson Corporation was authorized to issue 20,000 shares of $50 par value ordinary shares and 3,000 shares of $100 par value, 5% cumulative preference shares. Shown below are some selected account balances for Jackson Corporation at 31 December 2020: Share Capital: Ordinary Share premium: ordinary Share Capital: Preference Share Share premium: Preference Retained eamings $500,000 $250,000 $300,000 $24,000 $650,000 During 2021, the following events occurred: 11 June Purchased 2,000 treasury shares at $65 per ordinary share. 10 Aug Reissued 1,000 treasury shares acquired on 11 June at a price of $70 per share. 31 Dec Declared dividend of $1 per ordinary share and 5% dividend for preference shares. Dividend will be payable in Jan 2022. Income statement for the year ended 31 December 2021 showed a net income of $259,000. Required a) Prepare the necessary entries for the above events. (No narratives required.) b) Prepare the shareholders' equity section of Jackson Corporation's statement of financial position at 31 December 2021 according to HKFRS requirements.

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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