Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chopin Corporation was incorporated in January 2020 and was authorized to issue 50,000 shares of $250 par value, 5% noncumulative preference shares; and 2,250,000 ordinary

Chopin Corporation was incorporated in January 2020 and was authorized to issue 50,000 shares of $250 par value, 5% noncumulative preference shares; and 2,250,000 ordinary shares of $10 par value. The following transactions occurred during the year of 2020: (1) 10 January, the company issued 40,000 preference shares for cash at $260 per share. (2) 3 February, it further issued 1,200,000 ordinary shares for cash at $12.5 per share. (3) 5 August, the company repurchased 160,000 ordinary shares at a price of $15 per share. (4) 6 October, the company reissued 100,000 treasury shares acquired in August at a price of $20 per share. (5) 31 December, the board of directors declared a cash dividend of $1 per share to the ordinary shareholders, as well as satisfy all preference share dividend requirements. All dividends will be paid in next accounting year at 15 March 2021. Required: (a) Journalize the above transactions in 2020. (7 marks) (b) Prepare the shareholders' equity section of Chopin Corporation's statement of financial position at 31 December 2020. Chopin's profits after tax for 2020 was $10,000,000. (8 marks)image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Environmental Accounting Issues Concepts And Practice

Authors: Stefan Schaltegger, Roger Burritt

1st Edition

1874719349, 9781874719342

More Books

Students also viewed these Accounting questions

Question

2. Develop a good and lasting relationship

Answered: 1 week ago

Question

1. Avoid conflicts in the relationship

Answered: 1 week ago