Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. financial accounting exercise: class 9 question 1

Financial Accounting Exercise: Class 9 Question 1 Sonic Co. has 100,000 ordinary shares (no-par) issued...

70.2K

Verified Solution

Question

Accounting

image
Financial Accounting Exercise: Class 9 Question 1 Sonic Co. has 100,000 ordinary shares (no-par) issued and outstanding when it started its business in Jan 2019. During 2019, the only share transaction was the acquisition of 800 treasury shares at 9 per share. The share premium account as at 1 Jan 2020 was $15,000. During 2020, the following transactions occurred: 1)Reacquired 500 shares at $10 per shares on 5 January 2020 ii)Sold 200 shares of treasury shares at S4 per share on 7 May 2020 iii)issued 2,500 shares of ordinary shares at $8 per share on 5 July 2020 iv) declared cash dividend $2,250 for ordinary shares on 31 December 2020 REQUIRED: (a) Prepare journal entries for the above transactions. (b) Calculate the share premium balance as at 31 December 2020. Question 2 ABC Co. has 2,000 shares, 10% preference shares of $50 par, and 8,000 shares ordinary shares outstanding at the beginning of the year. During the year, 1000 shares of treasury shares are purchased. The net profit for the year is $250,000 with dividend declared for preference shares only. Calculate earnings per share on ordinary share

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

yeah! humans average hear beat in a min

Biology
1.2K views

2 List the 3 main types of polysaccharides complex carbohydrates and fill in the table...

Geometry
1.2K views

Find the measure of the arc or central angle indicated Assume that lines which appear...

Basic Math
1.2K views

Find sin sin cos 4 and tan sin x sin cos tan 25 n from...

Accounting
1.2K views

Boxwood Company sells blankets for $40 each. The following was taken from the inventory records...

Accounting
1.2K views

Attorney Kristin Maloney invoiced Johnson for $28,230 and has agreed to accept 2,300 shares of...

Accounting
1.2K views

In batch processing, data is collected as it is generated and processed later at a...

Accounting
1.2K views

Sunglasses of America Company manufactures sunglasses. Following is a list of costs the company incurred...

Accounting
1.2K views

Citing Accounting Standards Codification (FASB). Explain how accounting disclosures for intangibles are similar and different...

Accounting
1.2K views

1. Briefly describe two situations in which changes in fair value are not reported on...

Accounting
1.2K views

Hapoy Bank starts with $500 in bank capital. It then takes in $1,000 I assets...

Finance
1.2K views

April is a college student who wants to open a bank account for the first...