https://edugen.wileyplus.com/edugen/student/mainfr.uni Weygandt, Financial Accou
ID: 2510732 • Letter: H
Question
https://edugen.wileyplus.com/edugen/student/mainfr.uni Weygandt, Financial Accounting: IFRS, 3e ctice Assignment Gradebook ORION Downloadable eTextbook ment Problem 11-6A (Part Level Submission) Oriole Limited has been authorized to issue 2 0.200 E 100 par value, 10%, non-cumulative preference shares and 1,038,258 no-par ordinary shares. The corporation assigned a £2.61 stated value to the ordinary shares. At December 31, 2017, the ledger contained the following balances pertaining to equity Share Capital-Preference Share Premium-Preference Share Capital-Ordinany Share Premium-Ordinary Treasury Shares-Ordinary (940 shares) Share Premium-Treasury Retained Earnings £106,000 26,000 1,038,258 1,754,100 10,340 940 83,500 The preference shares were issued for land having a fair value of E132,000. All ordinary shares issued were for cash. In November, 1,410 ordinary shares were purchased for the treasury at a per share cost of E11. In December, 470 treasury shares were sold for £13 per share. No dividends were declared in 2017 Prepare the journal entries for the: (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) Issuance of preference shares for land. (2) Issuance of ordinary shares for cash (3) Purchase of treasury shares (ordinary) for cash. (4) Sale of treasury shares for cash, No. Account Titles andE Debit Credit All Rights Reserved. A Division of John Wolcy& Sons. Inc.Explanation / Answer
Solution:
No.
General Journal
Debit
Credit
1)
Land
132000
Share Capital - Preference
132000
2)
Cash (1038258*2.61)
2709853
Share Capital - Ordinary (1410*2.61)
2709853
3)
Treasury Stock (1410*11)
$15,510
Cash
$15,510
4)
Cash (470*13)
$6,110
Treasury Stock (470*Cost 11)
$5,170
Share Premium - treasury (Bal fig)
$940
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
No.
General Journal
Debit
Credit
1)
Land
132000
Share Capital - Preference
132000
2)
Cash (1038258*2.61)
2709853
Share Capital - Ordinary (1410*2.61)
2709853
3)
Treasury Stock (1410*11)
$15,510
Cash
$15,510
4)
Cash (470*13)
$6,110
Treasury Stock (470*Cost 11)
$5,170
Share Premium - treasury (Bal fig)
$940
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.