Prepare general journal entries to record the following unrelated transactions of a limited company: Payment of...

Prepare general journal entries to record the following unrelated transactions of a limited company:

Payment of an interim dividend of $400,000 (in cash).
Declaration of a final dividend of $840,000.
Transfer of $240,000 to the general reserve from retained earnings.
Payment of 600,000 bonus shares, fully paid at $1 per share from a general reserve.
Issued 500,000 shares for $30,000,000 by a private placement.

Solutions

Expert Solution

Payment of an interim dividend of $400,000 (in cash):- Cash balance will reduce on payament of dividend. Payable liability recognised on declaration now paid.

Declaration of a final dividend of $840,000.:- New dividend liability created. Dividend is adjusted from retained earnings.

Transfer of $240,000 to the general reserve from retained earnings.:- Retaiend earnings balance reduced and General reserve balance increased

Payment of 600,000 bonus shares, fully paid at $1 per share from a general reserve.:- Bonus shares are common stock once issued. The same is adjusted from General reserve.

Issued 500,000 shares for $30,000,000 by a private placement.:- Cash is received on issue of shares. Common stock is increased on issue.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Prepare general journal entries to record the following unrelated transactions: (a) The payment of a declared...

Prepare general journal entries to record the following unrelated transactions: (a) The payment of a declared final ordinary share dividend of $50,000 (b) The transfer of $350,000 to dividend equalisation reserve (c) The revaluation of land upwards by $ 190,000 and a subsequent bonus issue of ordinary shares for $150,000. (d) The declaration of a final dividend of $0.0375cents per share on 2,500,000 $1.00 ordinary shares.

Prepare the general journal entries to record the above transactions.

Read each of the following transactions A). The cash sales per a register tape were $593 The cash count is $559 B). The cash sales per a register tape were $9,400 The cash count is $8,910. Prepare the general journal entries to record the above transactions.

Prepare journal entries in general journal format to record the following transactions for the City of...

Prepare journal entries in general journal format to record the following transactions for the City of Dallas General Fund (subsidiary detail may be omitted) 1. The budget prepared for the fiscal year included total estimated revenues of $4,693,000, appropriations of $4,686,000 and estimated other financing uses of $225,000. 2. Purchase orders in the amount of $451,000 were mailed to vendors. 3. The current year’s tax levy of $4,005,000 was recorded; uncollectible taxes were estimated to be 2% of the tax...

. Prepare journal entries to record the December transactions in the General Journal Tab in the...

. Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense. 1-Dec Began business by depositing $9500 in a bank account in the name of the company in exchange for 950...

Prepare journal entries in general journal format to record the following transactions for the 2020 fiscal...

Prepare journal entries in general journal format to record the following transactions for the 2020 fiscal year for the City of Portage General Fund (Subsidiary detail may be omitted.). The budget prepared for the fiscal year included estimated revenues of $3,774,000, appropriations of $3,695,000 and estimated other financing uses of $35,000. Purchase orders in the amount of $838,000 were mailed to vendors The current year’s tax levy of $3,005,000 was recorded; uncollectibles taxes were estimated to be 2% of the...

prepare general journal entries on Dec 31 to record the following unrelated year end adjustments. a....

prepare general journal entries on Dec 31 to record the following unrelated year end adjustments. a. On October 1, the company received 4 months rent in advance from a tenant whose rent is $650 per month. The $2,000 was credited to the Unearned Rent account. b.) The prepaid insurance account has a $5,200 debit balance before adjustment. An examination of insurance policies shows $800 of unexpired insurance. c.) The company collects rent revenue monthly from its tenants. One tenant whose...

Prepare entries in general journal form to record the following transactions in General Fund general ledger...

Prepare entries in general journal form to record the following transactions in General Fund general ledger accounts for fiscal year 2019. Use modified accrual accounting for the General fund only -The legal budget for the year provided for $900,000 of estimated revenues, $800,000 appropriations, and $50,000 transfer out to debt service fund. -Issued $ 250,000 of purchase orders outstanding for office supplies. -Property taxes were levied in the amount of $400,000. It is estimated that 2 percent of the taxes...

#1. Prepare journal entries to record the December transactions in the General Journal Tab in the...

#1. Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense. 1-Dec Began business by depositing $10500 in a bank account in the name of the company in exchange for 1050...

Prepare journal entries to record the December transactions in the General Journal Tab in the excel...

Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense. 1-Dec Began business by depositing $6500 in a bank account in the name of the company in exchange for 650 shares...

#1. Prepare journal entries to record the December transactions in the General Journal Tab in the...

#1. Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense. 1-Dec Began business by depositing $6500 in a bank account in the name of the company in exchange for 650...

Subjects