Blaze Ltd has decided to purchase shares with a nominal value of 110,000 (originally issued for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Blaze Ltd has decided to purchase shares with a nominal value of £110,000 (originally issued for £120,000) for £140,000. The purchase is to be funded out of distributable profits. The statement of financial position of Blaze Ltd immediately prior to the purchase of the shares is as follows: £ Net assets 950,000 Share capital (£1 shares) Share premium 500,000 250,000 Retained earnings 200,000 Required (a) (b) Prepare journal entries to give effect to the above transaction. Prepare the statement of financial position of Blaze Ltd immediately after the purchase. (c) Comment on the capitalisation of capital and revenue reserve of Blaze Ltd after the repurchase of its shares. Blaze Ltd has decided to purchase shares with a nominal value of £110,000 (originally issued for £120,000) for £140,000. The purchase is to be funded out of distributable profits. The statement of financial position of Blaze Ltd immediately prior to the purchase of the shares is as follows: £ Net assets 950,000 Share capital (£1 shares) Share premium 500,000 250,000 Retained earnings 200,000 Required (a) (b) Prepare journal entries to give effect to the above transaction. Prepare the statement of financial position of Blaze Ltd immediately after the purchase. (c) Comment on the capitalisation of capital and revenue reserve of Blaze Ltd after the repurchase of its shares.
Expert Answer:
Answer rating: 100% (QA)
Step 1 Introduction Treasury stock is acknowledged as the reacquired stock of a corporation which we... View the full answer
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
Posted Date:
Students also viewed these accounting questions
-
A wood products company has decided to purchase new logging equipment for $100,000 with a trade-in of its old equipment. The old equipment has a BV of $10,000 at the time of the trade-in. The new...
-
A wood products company has decided to purchase new logging equipment for $100,000 with a trade-in of its old equipment. The old equipment has a BV of $10,000 at the time of the trade-in. The new...
-
A wood products company has decided to purchase new logging equipment for $100,000 with a trade-in of its old equipment. The old equipment has a BV of $10,000 at the time of the trade-in. The new...
-
Procter & Gamble just received payment for a large export of Tide in the amount of 275,000 Denmark kroner (DKK). If the exchange rate is $0.1992 CAD per DKK, how many Canadian dollars will...
-
Gary Schwartz is the top salesman for his company. Records indicate that he makes a sale on 70% of his sales calls. If he calls on four potential clients, what is the probability that he makes...
-
Describe, in your own words, what a high-performing project team can do.
-
UK Ltd is the wholly-owned subsidiary of a US parent, US Inc. US Inc has a number of subsidiaries located in the US and in Europe. All group companies prepare financial statements to 31 December. For...
-
On May 31, 2012, Express Delivery, the overnight shipper, had total assets of $21,000,000,000 and total liabilities of $13,000,000,000. Included among the assets were property, plant, and equipment...
-
Fielding Hardware is adding a new product line that will require an investment of $ 1 , 4 8 0 , 0 0 0 . Managers estimate that this investment will have a 1 0 - year life and generate net cash...
-
Refer to Fig. 9.15, which shows three pipes inside a larger pipe. The inside pipes carry water at 200°F and the large pipe carries water at 60F. The average velocity of flow is 25.0 ft/s in each...
-
I. Draw the shear and bending-moment diagrams for the beam and loading shown and determine the maximum normal stress due to bending. Remember to calculate the Section Modulus [S] B 69M 28 75 N 3 m 4m...
-
(In millions, except per share amounts) INCOME STATEMENTS Year Ended June 30, Revenue: Product Service and other Total revenue Cost of revenue: Product 2021 71,074 97,014 168,088 18,219 Service and...
-
Exploring the Relationship between Workplace Flexibility and Employee Engagement b. The objective of the Study: Is to examine the effect of workplace flexibility on employee engagement in the...
-
Explain the three menu costing approaches widely used by restaurant managers. Apply theory in RM in Food and Beverage Operations
-
As a gaming fanatic, you've earned several honors and a significant amount of money. You've been requested to form a non-profit to promote the business because of your renown. An appeal letter should...
-
A company is considering purchasing new equipment the equipment will allow the company to expand into a new product line. the equipment will be installed in the company existing facility which of the...
-
Which of the following is a true statement regarding the Project Stakeholder Management processes? The processes overlap and interact with one another All of the processes focus only on communication
-
Nate prepares slides for his microscope. In 1 day he prepared 12 different slides. Which equation best represents y, the total number of slides Nate prepares in x days if he continues at this rate? A...
-
At the end of the financial year ended 30 June 2015, the trial balance of Veronica, Valda and Victoria is as shown below. Victoria made her advance before 1 July 2014. Veronica and Valda each...
-
The information in the following table relates to the accounts receivable and allowance for doubtful debts of Prime Moving Ltd. Ignore GST. The company policy is to provide an allowance for doubtful...
-
Using the periodic inventory system, prepare general journal entries for the following transactions of Heidelberg Housewares (assume no GST): 1. Purchased inventory on credit for $58 200. 2. Sold...
-
Define a business transaction in the broad sense and give examples of the two different kinds of transactions.
-
What two equalities in accounting must be maintained in transaction analysis?
-
What is a T-account? What is its purpose?
Study smarter with the SolutionInn App