Best Audi Holdings Limited (BAHL) is a car dealership headquartered in Victoria, BC and traded on the TSX. Richard Leung, the Corporate Controller, has engaged you to prepare any required entries for the year ended December 31, 2022. There have been a number of debt and equity related transactions this past year which are indicated, in chronological order, below. You are required to make the appropriate entries. Richard has instructed you to show all calculations and to clearly label each of the entries with the date. If an entry is not required, Richard asked you to provide a short explanation as to why. Preferred dividends had not been paid for the years ended December 31,2020 and 2021. Preliminary net income for the year ended December 31,2022 , excluding the effect of ary adjustments that may arise from the following transactions, was $820,000;CHL 's effective tax rate is 28%. The following transactions occurred during 2022. - 2 Jan. Redeemed 500 preferred shares at $105 per share - 13 Mar. Retired 5,000 common shares for $27 per share - 4Apr. One half of the holders of the $1,200,000 face value bonds to which all of the conversion rights pertain exercised their conversion option of 100 shares for each 1.000 bond and at this date the related unamortized discount was $50,000 and has a coupon rate of 10%, paid quarterly. - 15 May A1% stock dividend was declared to be distributed on the same day and valued at $7.50 per share. - 30 June Adopted a stock option plan for the company's management group. 5 executives received 500 options each entiting them to purchase 1AHL shares at a purchase price of $40 per share any time after June 30,2022 . Models indicated the total value of the option plan to be $150,000 and the trading price of the shares were $10 each on this day. - Oct 1-After the release of favourable earnings projections, the share price soared to $50 and all of the executives exercised their stock options. - 30 Dec. Declared a $120,000 cash dividend. Required: Prepare the required entries, if any, for each of the above events as well as any entries that may be required and arising from the beginning of year Shareholders' Equity statement, with supporting computations. For the dividends entry, record the total dividends payable for each class of share. If no entry is required, state why. Reference the entry by date. SHOW ALL WORK!!! Best Audi Holdings Limited (BAHL) is a car dealership headquartered in Victoria, BC and traded on the TSX. Richard Leung, the Corporate Controller, has engaged you to prepare any required entries for the year ended December 31, 2022. There have been a number of debt and equity related transactions this past year which are indicated, in chronological order, below. You are required to make the appropriate entries. Richard has instructed you to show all calculations and to clearly label each of the entries with the date. If an entry is not required, Richard asked you to provide a short explanation as to why. Preferred dividends had not been paid for the years ended December 31,2020 and 2021. Preliminary net income for the year ended December 31,2022 , excluding the effect of ary adjustments that may arise from the following transactions, was $820,000;CHL 's effective tax rate is 28%. The following transactions occurred during 2022. - 2 Jan. Redeemed 500 preferred shares at $105 per share - 13 Mar. Retired 5,000 common shares for $27 per share - 4Apr. One half of the holders of the $1,200,000 face value bonds to which all of the conversion rights pertain exercised their conversion option of 100 shares for each 1.000 bond and at this date the related unamortized discount was $50,000 and has a coupon rate of 10%, paid quarterly. - 15 May A1% stock dividend was declared to be distributed on the same day and valued at $7.50 per share. - 30 June Adopted a stock option plan for the company's management group. 5 executives received 500 options each entiting them to purchase 1AHL shares at a purchase price of $40 per share any time after June 30,2022 . Models indicated the total value of the option plan to be $150,000 and the trading price of the shares were $10 each on this day. - Oct 1-After the release of favourable earnings projections, the share price soared to $50 and all of the executives exercised their stock options. - 30 Dec. Declared a $120,000 cash dividend. Required: Prepare the required entries, if any, for each of the above events as well as any entries that may be required and arising from the beginning of year Shareholders' Equity statement, with supporting computations. For the dividends entry, record the total dividends payable for each class of share. If no entry is required, state why. Reference the entry by date. SHOW ALL WORK
