FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Please explain
2023
Sep. 15
Nov. 1
The preference dividend and the final
ordinary dividend of 16c per fully paid
share, both declared on 30 June 2023,
were paid. The directors do not need
any other party to authorise the payment
of dividends.
2024
Jan. 10
A 1-for-5 renounceable rights offer was
made to ordinary 'A' shareholders at an
issue price of $1.90 per share. The expiry
date on the offer was 30 November 2023.
The issue was underwritten at a
commission of $10 000.
Nov. 30 Holders of 380 000 shares accepted the
rights offer, paying the required price per
share, with the renounced rights being
taken up by the underwriter. Ordinary 'A'
shares were duly issued.
Dec. 10 Money due from the underwriter
was received.
The directors transferred $35 000
from retained earnings to a
replacement reserve.
Feb. 28 As a result of options being exercised,
70 000 ordinary 'C' shares were issued.
Unexercised options lapsed and an option
reserve was created.
Apr. 30 The directors made a call on the
ordinary 'B' shares for 80c per share.
Call money was payable by 31 May.
May 31 All call money was received except for that
due on 1000 shares.
Jun. 18
Jun. 30
Jun. 30
Shares on which the final call was unpaid
were forfeited and a forfeited share reserve
was set up.
Profit and comprehensive income for the
year was $1 580 000.
The directors declared a 10c per
share final dividend on all fully paid
'A' and 'B' ordinary shares, 5c per
share on 'C' shares and the dividend on
preference shares. All dividends to be paid
on 15 September 2024.
MOSQUE
2. Prepare the equity section of the statement of financial
position as at 30 June 2024.
4.19 Dividends
OF
Tou
POTER
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Transcribed Image Text:2023 Sep. 15 Nov. 1 The preference dividend and the final ordinary dividend of 16c per fully paid share, both declared on 30 June 2023, were paid. The directors do not need any other party to authorise the payment of dividends. 2024 Jan. 10 A 1-for-5 renounceable rights offer was made to ordinary 'A' shareholders at an issue price of $1.90 per share. The expiry date on the offer was 30 November 2023. The issue was underwritten at a commission of $10 000. Nov. 30 Holders of 380 000 shares accepted the rights offer, paying the required price per share, with the renounced rights being taken up by the underwriter. Ordinary 'A' shares were duly issued. Dec. 10 Money due from the underwriter was received. The directors transferred $35 000 from retained earnings to a replacement reserve. Feb. 28 As a result of options being exercised, 70 000 ordinary 'C' shares were issued. Unexercised options lapsed and an option reserve was created. Apr. 30 The directors made a call on the ordinary 'B' shares for 80c per share. Call money was payable by 31 May. May 31 All call money was received except for that due on 1000 shares. Jun. 18 Jun. 30 Jun. 30 Shares on which the final call was unpaid were forfeited and a forfeited share reserve was set up. Profit and comprehensive income for the year was $1 580 000. The directors declared a 10c per share final dividend on all fully paid 'A' and 'B' ordinary shares, 5c per share on 'C' shares and the dividend on preference shares. All dividends to be paid on 15 September 2024. MOSQUE 2. Prepare the equity section of the statement of financial position as at 30 June 2024. 4.19 Dividends OF Tou POTER
14.18 Shares, options, dividends and reserve transfers
LO6, 8, 9
The equity of Pango Pango Oil Extraction and Refining
Company Limited at 30 June 2023 consisted of the following.
400 000 ordinary 'A' shares issued at
$2.00, fully paid
300 000 ordinary 'B' shares issued at
$2.00, called to $1.20
50 000 6% preference shares issued at
$1.50, fully paid
Share options issued at 32c, fully paid
Retained earnings
$800 000
360 000
75 000
24 000
318 000
The options were exercisable before 28 February 2024.
Each option entitled the holder to acquire two ordinary 'C'
shares at $1.80 per share, the amount payable on notification
to exercise the option.
Required
1. Prepare general journal entries to record the follow-
ing transactions, which occurred during the year ended
30 June 2024.
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Transcribed Image Text:14.18 Shares, options, dividends and reserve transfers LO6, 8, 9 The equity of Pango Pango Oil Extraction and Refining Company Limited at 30 June 2023 consisted of the following. 400 000 ordinary 'A' shares issued at $2.00, fully paid 300 000 ordinary 'B' shares issued at $2.00, called to $1.20 50 000 6% preference shares issued at $1.50, fully paid Share options issued at 32c, fully paid Retained earnings $800 000 360 000 75 000 24 000 318 000 The options were exercisable before 28 February 2024. Each option entitled the holder to acquire two ordinary 'C' shares at $1.80 per share, the amount payable on notification to exercise the option. Required 1. Prepare general journal entries to record the follow- ing transactions, which occurred during the year ended 30 June 2024.
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