Question 2 The equity accounts of Marvell Ltd. on January 1, 2020, were as follows. Share Capital-Preference (9%, $50 par, cumulative,10,000 shares authorized, 8,000 shares issued) Share Capital-Ordinary ($1 stated value, 2,000,000 shares authorized, 1,000,000 shares issued) Share Premium-Preference ? Share Premium-Ordinary Retained Earnings 100,000 1,450,000 1,816,000 During 2020, the corporation had the following transactions and events pertaining to its equity. Jan 25 Purchased 20,000 ordinary shares for the treasury at a cost of $2.5 per share. Issued 50,000 ordinary shares for $152,000. Reissued 10,000 treasury shares-ordinary for $42,000. Purchased 1,000 ordinary shares for the treasury at a cost of S6 per share. Determined that net income for the year was $452,000. Close the income summary Feb. 1 Apг. 14 Nov. 10 Dec. 31 асcount. Declared a dividend of $0.5 per ordinary share, to be payable in April 2021. Dividend for the preference shares was not paid in 2019. Dec. 31 Instructions (a.) Journalize the transactions and the closing entry for net income and dividend. (b.) Prepare the equity section of the statement of financial position at December 31, 2020.
Question 2 The equity accounts of Marvell Ltd. on January 1, 2020, were as follows. Share Capital-Preference (9%, $50 par, cumulative,10,000 shares authorized, 8,000 shares issued) Share Capital-Ordinary ($1 stated value, 2,000,000 shares authorized, 1,000,000 shares issued) Share Premium-Preference ? Share Premium-Ordinary Retained Earnings 100,000 1,450,000 1,816,000 During 2020, the corporation had the following transactions and events pertaining to its equity. Jan 25 Purchased 20,000 ordinary shares for the treasury at a cost of $2.5 per share. Issued 50,000 ordinary shares for $152,000. Reissued 10,000 treasury shares-ordinary for $42,000. Purchased 1,000 ordinary shares for the treasury at a cost of S6 per share. Determined that net income for the year was $452,000. Close the income summary Feb. 1 Apг. 14 Nov. 10 Dec. 31 асcount. Declared a dividend of $0.5 per ordinary share, to be payable in April 2021. Dividend for the preference shares was not paid in 2019. Dec. 31 Instructions (a.) Journalize the transactions and the closing entry for net income and dividend. (b.) Prepare the equity section of the statement of financial position at December 31, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 2 please
Transcribed Image Text:Question 1
Marvel Ltd. 's accountant is preparing the bank reconciliation at 31 December 2020.
The December bank statement showed the following checks and deposits.
Bank Statement
Checks
Deposits
Date
Number
Amount
Date
Amount
12-4
S1,640.70
1,300.00
2,130.00
3,080.00
685.00
$2,530.20
1,211.60
2,365.10
836.15
3475
12-1
12-8
3476
3477
12-4
12-10
12-8
12-15
3479
12-16
12-27
3480
12-21
2,954.00
2,567.30
2,836.00
1,025.00
12-30
3482
475.50
12-26
12-29
3483
1,140.00
12-29
12-31
5800*
600.00
12-30
3485
*See note 3 below
12-31
540.80
The cash records per books for August showed the followings.
Cash Payments Journal
Amount
$1,640.70
1,300.00
2,130.00
3,080.00
658.00
Date
12-1
Number
3475
Date
12-20
Number
3482
Amount
475.50
12-2
3476
12-22
3483
1,140.00
540.80
12-2
3477
12-24
3485
12-8
3479
12-30
3486
256.25
12-10
3480
Cash Receipts Journal
Amount
$2,530.20
1,211.60
2,365.10
Date
12-1
12-3
12-7
12-15
886.15
12-20
2,954.00
2,567.30
2,836.00
1,025.00
1,916.15
12-25
12-28
12-30
12-31
Transcribed Image Text:Question 2
The equity accounts of Marvell Ltd. on January 1, 2020, were as follows.
Share Capital-Preference (9%, $50 par, cumulative,10,000 shares
authorized, 8,000 shares issued)
Share Capital-Ordinary ($1 stated value, 2,000,000 shares authorized,
1,000,000 shares issued)
Share Premium-Preference
?
?
Share Premium-Ordinary
Retained Earnings
100,000
1,450,000
1,816,000
During 2020, the corporation had the following transactions and events pertaining to its equity.
Jan 25
Feb. 1
Purchased 20,000 ordinary shares for the treasury at a cost of $2.5 per share.
Issued 50,000 ordinary shares for $152,000.
Reissued 10,000 treasury shares-ordinary for $42,000.
Purchased 1,000 ordinary shares for the treasury at a cost of S6 per share.
Determined that net income for the year was $452,000. Close the income summary
Аprг. 14
Nov. 10
Dec. 31
асcount.
Declared a dividend of $0.5 per ordinary share, to be payable in April 2021. Dividend
for the preference shares was not paid in 2019.
Dec. 31
Instructions
(a.) Journalize the transactions and the closing entry for net income and dividend.
(b.) Prepare the equity section of the statement of financial position at December 31, 2020.
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