Lewis Co. recently hired a new accountant with very limited experience in corporate accounting. During the first month, he made the following entries for the corporation's share capital: January 2 Cash 200,000 Share capital 200,000 Issued 10,000 of PS par value ordinary shares at P20 per share January 10 Cash 600,000 Share capital 600,000 Issued 15,000 of P30 par value preference shares at P40 per share January 15 Share capital 8,000 Cash 8,000 Purchased 1,000 ordinary shares for the treasury at P8 per share January 31 Cash 1,000 1,500 Loss on sale of share capital Share capital 2,500 Sold 500 treasury shares at P2 per share Prepare the necessary correcting entries.

Lewis Co. recently hired a new accountant with very limited experience in corporate accounting. During the first month, he made the following entries for the corporation's share capital: January 2 Cash 200,000 Share capital 200,000 Issued 10,000 of PS par value ordinary shares at P20 per share January 10 Cash 600,000 Share capital 600,000 Issued 15,000 of P30 par value preference shares at P40 per share January 15 Share capital 8,000 Cash 8,000 Purchased 1,000 ordinary shares for the treasury at P8 per share January 31 Cash 1,000 1,500 Loss on sale of share capital Share capital 2,500 Sold 500 treasury shares at P2 per share Prepare the necessary correcting entries.

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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