Shamrock Ltd had the following shareholders' equity on December 31, 2021: Common shares, 2,800,000 shares issued and outstanding $8,400,000 Contributed surplus (Common shares) 14,000 Retained earnings 21.700,000 $30,114.000 Total shareholders' equity The following transactions occurred, in the order given, during 2022: (a) 440 subscriptions were sold for common shares. Each subscription entitled the purchaser to purchase 20 shares in the company at a price of $6 per share. According to the subscription contracts, a payment of $31 per subscription was required at the time the subscriptions were sold. (b) As per the subscription contracts, the second payment was for the balance of the subscription price. All but 60 of the subscribers made this payment. (c) The subscription contracts specify that, in the event of default, the first payment will not be refunded to defaulting subscribers. Also at this time, common shares are issued to subscribers that have fully paid on the contract. (d) Shamrock repurchased and cancelled 100,000 common shares at a cost of $2.30 per share. (e) A cash dividend of $0.30 per share was deciared. The date of record was after all of the events above.

Shamrock Ltd had the following shareholders' equity on December 31, 2021: Common shares, 2,800,000 shares issued and outstanding $8,400,000 Contributed surplus (Common shares) 14,000 Retained earnings 21.700,000 $30,114.000 Total shareholders' equity The following transactions occurred, in the order given, during 2022: (a) 440 subscriptions were sold for common shares. Each subscription entitled the purchaser to purchase 20 shares in the company at a price of $6 per share. According to the subscription contracts, a payment of $31 per subscription was required at the time the subscriptions were sold. (b) As per the subscription contracts, the second payment was for the balance of the subscription price. All but 60 of the subscribers made this payment. (c) The subscription contracts specify that, in the event of default, the first payment will not be refunded to defaulting subscribers. Also at this time, common shares are issued to subscribers that have fully paid on the contract. (d) Shamrock repurchased and cancelled 100,000 common shares at a cost of $2.30 per share. (e) A cash dividend of $0.30 per share was deciared. The date of record was after all of the events above.

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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