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question $1\mathrm{.}1$ Prepare the journal entries to record the transactions of Canada Ltd$.($Show all working$)$

$1\mathrm{.}2$ Prepare the equity section as at December $2022.$

Answer the question in the space provided below.

Canada Ltd has been authorised to issue $800000$ $$50$ par value, $10\%$ no$-$par non$-$cumulative preference shares and $2000000$ no$-$par ordinary shares. The company assigned a $$5\mathrm{.}00$ stated value to the ordinary shares. On $31$ December $2022,$ the ledger contained the following balances pertaining to equity:

Share capital $$ Preference

Share premium $$ Preference

Share capital $$ Ordinary

Share premium $$ Ordinary

Treasury shares $$ Ordinary

Share premium $$ Treasury

Retained Earnings $300000$

$50000$

$3000000$

$600000$

$10000$

$1000$

$200000$

Additional information:

The preference shares were issued for land having a fair value of $$350000.$

All the ordinary shares were issued for $$6\mathrm{.}00$ cash.

On $1$ November, $1500$ ordinary shares that were stated at $$5,$were purchased for the treasury at a cost of $$9$ per share.

In December, $600$ treasury shares were sold for $$11$ per share.

No dividends were declared in $2022.$

question$2$

Journalise the transactions given below:

On $1$ January $2022,$ Canada Ltd had the following equity accounts:

Share capital $$ Ordinary $($$$30$ PV$,$ issued and outstanding $50000)$

Share premium $$ Ordinary

Retained Earnings $1500000$

$250000$

$600000$

During the year the following transactions occurred:

$1$ Feb Declared a $$1\mathrm{.}00$ cash dividend per share to shareholders of record on $15$ February, payable on $1$ March.

$1$ March Paid the dividends declared in February.

$1$ April Announced a $5-$for$-1$ share split. Prior to the split, the market price per share was $$35.$

$1$ July Declared a $10\%$ share dividend to shareholders of record on $15$ July, distributable $31$ July.

On $1$ July, the market price per share was $$8.$

$31$ July Issued the shares for the share dividend.

$31$ Dec Declared a $$0\mathrm{.}50$ per share dividend to shareholders of record on $15$ December, payable $5$ January $2021.$

$31$ Dec Determined that the net income for the year was $$350000.$

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