Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 5 patch garden plans to distribute $160 0

QUESTION 5 Patch Garden plans to distribute $160 000 in dividends. It has 20,000 7...

90.2K

Verified Solution

Question

Accounting

QUESTION 5

Patch Garden plans to distribute $160 000 in dividends. It has 20,000 7 per cent preferred share (cumulative) originally issued at $10 and 60 000 ordinary shares. How much will be distributed per share on preferred and ordinary shares?

  1. Preferred shares $1.68; Ordinary shares $1.68
  2. Preferred shares $0.70; Ordinary shares $2.43
  3. Preferred shares $3.35; Ordinary shares $1.12
  4. Preferred shares $0.70; Ordinary shares $2.26

QUESTION 6

Wolfgang issue shares via installment. On 1st June they issue a prospectus to potential investors advertising that they will sell 1,000,000 shares at $1 each. Payable $0.60 on application, $0.30 on allotment, and $0.10 on call. By 15th September, the applications are all received, and 1,500,000 share applications were received. On 30th September, Wolfgang decide to apply excess applications to allotment.

What journal entry should be entered on 15th September?

  1. Dr Cash Trust $500,000

Cr Application $500,000

  1. Dr Cash Trust $1,000,000

Cr Application $1,000,000

  1. Dr Cash Trust $900,000

Cr Application $900,000

Dr Application $250,000

Cr Cash Trust $250,000

  1. Dr Cash Trust $900,000

Cr Application $900,000

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