Prelow Ltd has authorized shares at January 1, 2020 of 100,000 ordinary shares with a par value of $20 per share, 50,000 and 5% cumulative, non-participating preference shares with a par value of $50 per share. 80% of the ordinary shares were sold for $30 per share and 20% for $35 along with the preference shares at par at January 1, 2020. Dividends of $120,000 were declared at December 31, 2020. The dividends were paid on January 1, 2021. 1. Prepare the journal entries at January 1, 2020 2. Prepare the journal entries at December 31, 2020
Prelow Ltd has authorized shares at January 1, 2020 of 100,000 ordinary shares with a par value of $20 per share, 50,000 and 5% cumulative, non-participating preference shares with a par value of $50 per share. 80% of the ordinary shares were sold for $30 per share and 20% for $35 along with the preference shares at par at January 1, 2020. Dividends of $120,000 were declared at December 31, 2020. The dividends were paid on January 1, 2021. 1. Prepare the journal entries at January 1, 2020 2. Prepare the journal entries at December 31, 2020
Cornerstones of Financial Accounting
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ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
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Prelow Ltd has authorized shares at January 1, 2020 of 100,000 ordinary shares with a par value of $20 per share, 50,000 and 5% cumulative, non-participating preference shares with a par value of $50 per share. 80% of the ordinary shares were sold for $30 per share and 20% for $35 along with the preference shares at par at January 1, 2020. Dividends of $120,000 were declared at December 31, 2020. The dividends were paid on January 1, 2021.
1. Prepare the journal entries at January 1, 2020
2. Prepare the journal entries at December 31, 2020
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