Part II Maria Limited is authorized to sell 1,000,000 its $10 par value ordinary shares. As...

Part II Maria Limited is authorized to sell 1,000,000 its $10 par value ordinary shares. As at the end of the current year, the company has actually sold 500,000 ordinary shares at $15 per share. In addition, of the 500,000 ordinary shares that have been sold, 40,000 shares have been repurchased at $80 per share to be used to meet the future requirements of a share option plan that the company intends to implement.

Required: Prepare the general journal entries required to record all the above transactions. Except for the workings of calculations, no explanation or date is required when preparing the journal entries.

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Question text The original sale of the $10 par value ordinary shares of Gray Company was recorded as follows: Cash............................................................................................. 430,000 Share Capital—Ordinary................................................. 350,000 Share Premium—Ordinary.............................................. 80,000 Instructions Record the treasury share transactions (given below) under the cost method: Transactions: (a) Bought 300 ordinary shares as treasury shares at $22. (b) Sold 90 shares of treasury shares at $19. (c) Sold 120 treasury shares at $28.

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