60.1K

Verified Solution

Link Copied!

Logical Case three: (15 marks) Tamer Company authorize to issue at 1/1/2017: Ordinary, $2 par value per share, 2,000,000 share Preference 6%; $60 par value per share, 10,000 shares. Cumulative and fully participate 1- January 2017 issued for cash 500,000 ordinary for $3, and 5000 preferences for $100 2- July 1, 2017 issued 500,000 shares for building (fair market 600,000). land (fair market 800,00) and equipment (fair market300,000). 3-January 1,2018 issued 5000 preference shares for 120,000 cash. 4- Agust1,2018 issued 1,000,000orinary shares for cash at $4. 5- January 17,2019 the company issued 500,000 ordinary shares for factory the asking price was 2,000,000 and the share market price was 3.5$. 6- June 1/2019 the company purchase 50,000 from its outstanding shares for 5$ each 7- August 1/2019 the company sold 20.000 from repurchased shares for $6. 8- September 1/2019 the company sold 20,000 from repurchased shares for $3.5 9-The net income for the years 2017, (200,000$), 2018(450,000$). 2019(500,0008). no dividend paid or declared during 2017 and 2018. 10-If the total amount of cash dividends declared for both classes of shares is $400,000 at 15, December 2019 Required: 1-Prepare all entries during 2019 including the needed entry for separating the dividend into the ordinary and Preference portions at 31 December 2019. 2- prepare share-holders equity section in 31/12/2019

Answer & Explanation Solved by verified expert

See Answer