BE15.3 (LO 1, 2, 4) Wilco SE has the following equity balances at December 31, 2022.

Share capitalordinary, 5 par value

510,000

Treasury shares

90,000

Retained earnings

2,340,000

Share premiumordinary

1,320,000

Prepare Wilcos December 31, 2022, equity section in the statement of financial position.

Q2

E15.9 (LO 1, 2) (Correcting Entries for Equity Transactions) Davison plc recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporations ordinary shares.

May

2

Cash

192,000

Share CapitalOrdinary

192,000

(Issued 12,000 shares of 10 par value ordinary shares at 16 per share)

10

Cash

600,000

Share CapitalOrdinary

600,000

(Issued 10,000 shares of 30 par value preference shares at 60 per share)

15

Share CapitalOrdinary

14,000

Cash

14,000

(Purchased 1,000 ordinary shares for the treasury at 14 per share)

31

Cash

8,500

Share CapitalOrdinary

5,000

Gain on Sale of Shares

3,500

(Sold 500 treasury shares at 17 per share)

Instructions

On the basis of the explanation for each entry, prepare the entries that should have been made for the ordinary share transactions.

Q3

E16.2 (LO 1) (Issuance and Repurchase of Convertible Bonds) Assume the same information in E16.1, except that Angela AG converts its convertible bonds on January 1, 2023.

Instructions

Compute the carrying value of the bond payable on January 1, 2023.

Prepare the journal entry to record the conversion on January 1, 2023.

Assume that the bonds were repurchased on January 1, 2023, for 1,940,000 cash instead of being converted. The net present value of the liability component of the convertible bonds on January 1, 2023, is 1,900,000. Prepare the journal entry to record the repurchase on January 1, 2023.

Q4

Distinguish the key similarities and differences between U.S. GAAP and IFRS related to intangible assets.

Q1 BE15.3 (LO 1, 2, 4) Wilco SE has the following equity balances at December 31, 2022. Share capital-ordinary, C5 par value C 510,000 Treasury shares 90,000 Retained earnings 2,340,000 Share premium-ordinary 1,320,000 Prepare Wilco's December 31, 2022, equity section in the statement of financial position. E15.9 (LO 1, 2) (Correcting Entries for Equity Transactions) Davison ple recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation's ordinary shares. May 2 Cash 192,000 Share Capital-Ordinary 192,000 (Issued 12,000 shares of 10 par value ordinary shares at 16 per share) 10 Cash 600,000 Share Capital-Ordinary 600,000 (Issued 10,000 shares of 30 par value preference shares at 60 per share) 15 Share Capital-Ordinary 14,000 Cash 14,000 (Purchased 1,000 ordinary shares for the treasury at E14 per share) 14,000 (Issued 10,000 shares of 30 par value preference shares at 60 per share) 15 Share Capital-Ordinary Cash (Purchased 1,000 ordinary shares for the treasury at 14 per share) 14,000 31 Cash 8.500 Share Capital - Ordinary 5,000 Gain on Sale of Shares 3.500 (Sold 500 treasury shares at 17 per share) Instructions On the basis of the explanation for each entry, prepare the entries that should have been made for the ordinary share transactions. Q3 E16.2 (L01) (Issuance and Repurchase of Convertible Bonds) Assume the same information in E16.1, except that Angela AG converts its convertible bonds on January 1, 2023 Instructions 1. Compute the carrying value of the bond payable on January 1, 2023. 2. Prepare the journal entry to record the conversion on January 1, 2023. 3. Assume that the bonds were repurchased on January 1, 2023, for 1,940,000 cash instead of being converted. The net present value of the liability component of the convertible bonds on January 1, 2023, is 1,900,000. Prepare the journal entry to record the repurchase on January 1, 2023. Q3 E16.2 (LO 1) (Issuance and Repurchase of Convertible Bonds) Assume the same information in E16.1, except that Angela AG converts its convertible bonds on January 1, 2023 Instructions 1. Compute the carrying value of the bond payable on January 1, 2023. 2. Prepare the journal entry to record the conversion on January 1, 2023. 3. Assume that the bonds were repurchased on January 1, 2023, for C1,940,000 cash instead of being converted. The net present value of the liability component of the convertible bonds on January 1, 2023, is 1,900,000. Prepare the journal entry to record the repurchase on January 1, 2023. 04 Distinguish the key similarities and differences between U.S. GAAP and IFRS related to intangible assets. . Q1 BE15.3 (LO 1, 2, 4) Wilco SE has the following equity balances at December 31, 2022. Share capital-ordinary, C5 par value C 510,000 Treasury shares 90,000 Retained earnings 2,340,000 Share premium-ordinary 1,320,000 Prepare Wilco's December 31, 2022, equity section in the statement of financial position. E15.9 (LO 1, 2) (Correcting Entries for Equity Transactions) Davison ple recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation's ordinary shares. May 2 Cash 192,000 Share Capital-Ordinary 192,000 (Issued 12,000 shares of 10 par value ordinary shares at 16 per share) 10 Cash 600,000 Share Capital-Ordinary 600,000 (Issued 10,000 shares of 30 par value preference shares at 60 per share) 15 Share Capital-Ordinary 14,000 Cash 14,000 (Purchased 1,000 ordinary shares for the treasury at E14 per share) 14,000 (Issued 10,000 shares of 30 par value preference shares at 60 per share) 15 Share Capital-Ordinary Cash (Purchased 1,000 ordinary shares for the treasury at 14 per share) 14,000 31 Cash 8.500 Share Capital - Ordinary 5,000 Gain on Sale of Shares 3.500 (Sold 500 treasury shares at 17 per share) Instructions On the basis of the explanation for each entry, prepare the entries that should have been made for the ordinary share transactions. Q3 E16.2 (L01) (Issuance and Repurchase of Convertible Bonds) Assume the same information in E16.1, except that Angela AG converts its convertible bonds on January 1, 2023 Instructions 1. Compute the carrying value of the bond payable on January 1, 2023. 2. Prepare the journal entry to record the conversion on January 1, 2023. 3. Assume that the bonds were repurchased on January 1, 2023, for 1,940,000 cash instead of being converted. The net present value of the liability component of the convertible bonds on January 1, 2023, is 1,900,000. Prepare the journal entry to record the repurchase on January 1, 2023. Q3 E16.2 (LO 1) (Issuance and Repurchase of Convertible Bonds) Assume the same information in E16.1, except that Angela AG converts its convertible bonds on January 1, 2023 Instructions 1. Compute the carrying value of the bond payable on January 1, 2023. 2. Prepare the journal entry to record the conversion on January 1, 2023. 3. Assume that the bonds were repurchased on January 1, 2023, for C1,940,000 cash instead of being converted. The net present value of the liability component of the convertible bonds on January 1, 2023, is 1,900,000. Prepare the journal entry to record the repurchase on January 1, 2023. 04 Distinguish the key similarities and differences between U.S. GAAP and IFRS related to intangible assets