Abc Company Reported The Following Amounts In The Equity Section Of Its December 31 2021 Statement Of Financial Positi 1 (46.89 KiB) Viewed 26 times
Abc Company Reported The Following Amounts In The Equity Section Of Its December 31 2021 Statement Of Financial Positi 2 (36.18 KiB) Viewed 26 times
ABC Company reported the following amounts in the equity section of its December 31, 2021, statement of financial position. Share capital-preference, 9%, $100 par (10,000 shares authorized, 4,000 shares issued) $400,000 Share capital-ordinary. $5 par (100,000 shares authorized 20,000 shares issued) 100,000 Share premium-preference 25,000 Retained earnings 450,000 Total $975,000 During 2022, ABC took part in the following transactions concerning equity 1 Purchased 2,200 shares of its own outstanding ordinary shares for $50 per share. ABC uses the cost method. 10 marks 2. Reissued 300 treasury shares for equipment with a fair value of $9,000. 15 marks 3. Declared a 10% share dividend on the outstanding ordinary shares when the shares are selling for $55 per share. 10 marks 4. Issued the share dividend. 10 marks 5. Declared the annual 2022 $9 per share dividend on preference shares. These dividends are payable in 2023 10 marks 6. Issued 100 Ordinary Shares for land. The fair value for the land is $60000.15 marks 7. Issued 400 preference shares at $100 per share. 10 marks Required: Prepare journal entries to record the transactions described above.
Time left 0.38:58 DE СТ Reissued 300 treasury shares for equipment with a fair value of $9,000. Dr 9000 CT 6000 15000 . Declared a 10% share dividend on the outstanding ordinary shares when the shares are selling for $55 per share Dr Cr a . . Issued the share dividend. Dr СТ Declared the annual 2022 99 per share dividend on preference shares. These dividends are payable in 2023 DE CI . Issued 100 Ordinary Shares for land. The fair value for the land is $60000 Dr CI 60000 500 59500 Issued 400 preference shares at $100 per share Dr R Cr +
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