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Use the following information to answer the next two questions. Aquaplant Agriculture Ltd is a company that specialises in aqua-agriculture along the east coast of Australia. The following information relates to its equity accounts for the year ending 30th June 2014. Statement of Financial Position (Extract) as at 30 June 2014 Shareholders' Equity Contributed Equity - ordinary Reserves Retained Profits A $545,000 B $535,000 C $540,000 D $560,000 ares ($1.50 issue price fully paid) On 1 March 2015 the directors offered to buy back shares from existing shareholders. The offer price was $4 per share. The total value purchased by Aquaplant Agriculture Ltd was $1,200,000. These shareholders were not entitled to the final dividend that the directors declared on 4th June 2015. The final dividend of 20 cents per share is to be paid in the following month. A Dr: Retained Earnings B Dr: Reserves $4,500,000 1.11 What would be the value of the final dividend after the share buy-back has occurred? 3,000,000 CR: Contributed Equity 1,500,000 1.12 What would be the general journal entry to record the final dividend on the 4th June 2015? CR: Contributed Equity

Use the following information to answer the next two questions. Aquaplant Agriculture Ltd is a company that specialises in aqua-agriculture along the east coast of Australia. The following information relates to its equity accounts for the year ending 30th June 2014. Statement of Financial Position (Extract) as at 30 June 2014 Shareholders' Equity Contributed Equity - ordinary Reserves Retained Profits A $545,000 B $535,000 C $540,000 D $560,000 ares ($1.50 issue price fully paid) On 1 March 2015 the directors offered to buy back shares from existing shareholders. The offer price was $4 per share. The total value purchased by Aquaplant Agriculture Ltd was $1,200,000. These shareholders were not entitled to the final dividend that the directors declared on 4th June 2015. The final dividend of 20 cents per share is to be paid in the following month. A Dr: Retained Earnings B Dr: Reserves $4,500,000 1.11 What would be the value of the final dividend after the share buy-back has occurred? 3,000,000 CR: Contributed Equity 1,500,000 1.12 What would be the general journal entry to record the final dividend on the 4th June 2015? CR: Contributed Equity

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Use the following information to answer the next two questions. Aquaplant Agriculture Ltd is a company that specialises in aqua-agriculture along the east coast of Australia. The following information relates to its equity accounts for the year ending 30th June 2014. Statement of Financial Position (Extract) as at 30 June 2014 Shareholders' Equity Contributed Equity - ordinary shares ($1.50 issue price fully paid) Reserves Retained Profits A $545,000 B $535,000 C $540,000 D $560,000 On 1st March 2015 the directors offered to buy back shares from existing shareholders. The offer price was $4 per share. The total value purchased by Aquaplant Agriculture Ltd was $1,200,000. These shareholders were not entitled to the final dividend that the directors declared on 4 June 2015. The final dividend of 20 cents per share is to be paid in the following month. $4,500,000 1.11 What would be the value of the final dividend after the share buy-back has occurred? A Dr: Retained Earnings B Dr: Reserves 3,000,000 CR: Contributed Equity 1,500,000 1.12 What would be the general journal entry to record the final dividend on the 4th June 2015? CR: Contributed Equity
Transcribed Image Text:Use the following information to answer the next two questions. Aquaplant Agriculture Ltd is a company that specialises in aqua-agriculture along the east coast of Australia. The following information relates to its equity accounts for the year ending 30th June 2014. Statement of Financial Position (Extract) as at 30 June 2014 Shareholders' Equity Contributed Equity - ordinary shares ($1.50 issue price fully paid) Reserves Retained Profits A $545,000 B $535,000 C $540,000 D $560,000 On 1st March 2015 the directors offered to buy back shares from existing shareholders. The offer price was $4 per share. The total value purchased by Aquaplant Agriculture Ltd was $1,200,000. These shareholders were not entitled to the final dividend that the directors declared on 4 June 2015. The final dividend of 20 cents per share is to be paid in the following month. $4,500,000 1.11 What would be the value of the final dividend after the share buy-back has occurred? A Dr: Retained Earnings B Dr: Reserves 3,000,000 CR: Contributed Equity 1,500,000 1.12 What would be the general journal entry to record the final dividend on the 4th June 2015? CR: Contributed Equity
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