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Answer the following question! Thank you No. Account Titles and Explanation 1. Cash Share Subscriptlons Recelvable Common Shares Subscribed 2. Cash Share Subscriptlons Recelvable 3.
Answer the following question! Thank you
No. Account Titles and Explanation 1. Cash Share Subscriptlons Recelvable Common Shares Subscribed 2. Cash Share Subscriptlons Recelvable 3. Common shares subscribed Cash Share Subscriptlons Recelvable (To record refund to defaulting subscribers) Share Subscriptlons Recelvable Contributed Surplus (To issue shares fully paid on subscriptions) 4. Common Shares Contrlbuted Surplus Retalned Earnings Cash 5. Cash Common Shares Preferred Shares Debit Credit The contributed surplus arose from net excess of proceeds over cost on a previous cancellation of common shares. Oriole prepares financial statements in accordance with ASPE. The following transaction s occurred, in the order given, during 2023: 1. Subscriptions were sold for 12,000 common shares at $25 per share. The first payment was for $9 per share. 2. The second payment for the sale in item 1 above was for $16 per share. All payments were received on the second payment except for 2,000 shares. 3. In accordance with the subscription contract, which requires that defaulting subscribers have all their payments refunded, refund cheques were sent to the defaulting subscribers. At this point, common shares were issued to subscribers who had fully paid on the contract. 4. Repurchased 22,000 common shares at $28 per share. They were then retired. 5. Sold 5,100 preferred shares and 2,900 common shares together for $282,000. The common shares had a fair value of $30 per shareStep by Step Solution
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