? ? ? A14-7 Share Retirement On I January 20X5, BC Ventures Corp. reported the f

Question

? ? ? A14-7 Share Retirement On I January 20X5, BC Ventures Corp. reported the following in shareholders' equity: fe: $386,000 Preferred shares, no-par value; $0.70, cumulative; authorized, unlimited shares; issued, 80,000 shares 642,000 Common shares, no-par value: authorized, unlimited shares; issued, 80,000 shares Contributed capital on retirement of common shares Retained earnings 14,000 1,250,000 38,000 AOCI for foreign exchange gains on foreign subsidiary During 20X5, certain shares were reacquired. In accordance with the regulations in BC Ventures' incorporating legislation, all reacquired shares were retired. Transactions were as follows: 15 January Bought 7.000 preferred shares for $5.20 per share 12 February Bought 2,000 common shares for $11 per share 25 February Bought 4,000 preferred shares for $4.00 per share 26 April Bought 5,000 preferred shares for $6.00 per share

Explanation / Answer

Preffered shares a/c Dr

to Bank a/c

Common shares a/c Dr

to Bank a/c

Preffered shares a/c Dr

to bank a/c

Preffered shares a/c Dr

to bank a/c

Common shares a/c Dr

to bank a/c

Retained earnings a/c Dr

to dividend payable a/c

Dividend payable a/c Dr

to Common shares a/c

Retained earnings aic Dr

to dividend payable to common shareholders

to dividend payable to preffered shareholders

.

73624

44800

Share holders equity section

Preffered shares as on 1st jan 20X5 80000 shares

Bought back during the year (16000) shares

Out standing at the end of the year 64000 shares

Common shares as on 1st jan 20X5 80000 shares

Brought back during the year (10000) shares

Dividend converted in to shares 3642 shares

Outstanding at the end of the year 73642 shares

Date particulars Debit Credit 15th jan

Preffered shares a/c Dr

to Bank a/c

36400 36400 12th Feb

Common shares a/c Dr

to Bank a/c

2200 2200 25th Feb

Preffered shares a/c Dr

to bank a/c

16000 16000 26th April

Preffered shares a/c Dr

to bank a/c

30000 30000 16th July

Common shares a/c Dr

to bank a/c

60000 60000 30th July

Retained earnings a/c Dr

to dividend payable a/c

28088 28088 30th July

Dividend payable a/c Dr

to Common shares a/c

28088 28088 30th Nov

Retained earnings aic Dr

to dividend payable to common shareholders

to dividend payable to preffered shareholders

118424

.

73624

44800

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