Part A Phelps Corporation has two classes of share capital outstanding: $5 par ordinary and $20 par preference. At December 31, 2022, the following accounts were included in equity. Share Capital Preference, 225,000 shares $4,500,000 Share Capital-Ordinary, 3,000,000 shares 15,000,000 Share Premium- Preference 300,000 Share Premium- Ordinary 40,500,000 Retained Earnings 6,750,000 The following transactions affected equity during 2022. Jan. 1 Feb. 1 60,000 preference shares issued at $32 per share. 80,000 ordinary shares issued at $28 per share. An ordinary dividend of 75 cents per share is declared. An ordinary dividend of 75 cents per share is paid. 2-for-1 share split on ordinary shares (par value reduced to $2.50). 75,000 ordinary treasury shares purchased at $15 per share. Phelps uses the cost method. Feb. 15 Feb. 20 June 1 July 1 Sept. 15 25,000 treasury shares reissued at $20 per share. Required Prepare journal entries for each date from Jan. 1 to Sept. 15.

Part A Phelps Corporation has two classes of share capital outstanding: $5 par ordinary and $20 par preference. At December 31, 2022, the following accounts were included in equity. Share Capital Preference, 225,000 shares $4,500,000 Share Capital-Ordinary, 3,000,000 shares 15,000,000 Share Premium- Preference 300,000 Share Premium- Ordinary 40,500,000 Retained Earnings 6,750,000 The following transactions affected equity during 2022. Jan. 1 Feb. 1 60,000 preference shares issued at $32 per share. 80,000 ordinary shares issued at $28 per share. An ordinary dividend of 75 cents per share is declared. An ordinary dividend of 75 cents per share is paid. 2-for-1 share split on ordinary shares (par value reduced to $2.50). 75,000 ordinary treasury shares purchased at $15 per share. Phelps uses the cost method. Feb. 15 Feb. 20 June 1 July 1 Sept. 15 25,000 treasury shares reissued at $20 per share. Required Prepare journal entries for each date from Jan. 1 to Sept. 15.

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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