Question
ABC Ltd commenced operations on 25 September 2016 by issuing 350 000 $5.00 shares, payable in full on application on a first-come, first-served basis. By
ABC Ltd commenced operations on 25 September 2016 by issuing 350 000 $5.00 shares, payable in full on application on a first-come, first-served basis. By 30 November 2016 the shares were fully subscribed and duly allotted. There were share issue costs of $10 000. No additional shares were issued during the year ending 30 June 2017. 75 000 fully paid ordinary shares have been issued on 1 October 2017 at the price of $4.00. $135 000 dividends (31.76 cents per share) were declared and paid during the 2018 financial year. A final dividend for 2018 of $51 850 was proposed but not recognised in the financial statements. There was a gain of $20 000 from the cash flow hedge arrangement during the 2018 financial year. Any gain or loss associated with the cash flow hedge is directly recognised in equity. There was no previously recognised cash flow hedge reserve before the 2018 financial year. Q1.What would be the share capital for 2018 to be put in Trial Balance? Q2. How to treat the gain of $20000 from the cash flow hedge in the Trial Balance. Please help
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