Question
BBA Limited was incorporated on September 1, 2019. The company had two transactions below related to its ordinary shares with a par value of $5
BBA Limited was incorporated on September 1, 2019.
The company had two transactions below related to its ordinary shares with a par value of $5 per share.
September 1: Issued 8,000 ordinary shares for cash at $5 per share.
November 16: Issued 20,000 ordinary shares for a patent with a fair value of $300,000.
Prepare journal entries for the two transactions above for BBA Limited.
B. CG Limited has the following treasury share transactions during November 2019 for the first time after its incorporation:
November 1: Bought 5,000 ordinary shares at $29 a share.
November 13: Sold 2,500 treasury shares at $30 a share.
Required: Prepare journal entries for the two transactions above for CG Limited using the cost method.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Horngrens Cost Accounting A Managerial Emphasis
Authors: Srikant M. Datar, Madhav V. Rajan, Louis Beaubien
8th Canadian Edition
134453735, 9780134824680, 134824687, 9780134733081 , 978-0134453736
