Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following was the stockholders' equity information of the balance sheet of Subhan Enterprise, Labor as at 30 June, 2019:- Stockholders' Equity Common stock 200,000

  

Following was the stockholders' equity information of the balance sheet of Subhan Enterprise, Labor as at 30 June, 2019:- Stockholders' Equity Common stock 200,000 of Rs. 50 each par value authorized and 120,000 common stock of Rs. 50 each par subscribed and issued at Rs. 60 each. Premium on Common Stock Retained Earnings Total Stockholders' equity Rs. 6,000,000 Rs. 1,200,000 Rs. 2,250,000 Rs. 9,450,000 During July, 2019 following transactions took place by the company:- 15 July 2019 The Company declared a cash dividend of Rs. 8 per common stock. 20 July 2019 a revenue reserve of Rs. 600,000 was created from the retained earnings. 10 August 2019 the Company acquired its own common stock of 20,000 from the market at Rs. 55 each. 05 September 2019 The Company decided to retire the Treasury Stock of 20,000 common shares acquired from the market as sufficient liquid surplus funds were available. Required A) Pass necessary accounting entries for the above transactions. B) Prepare Retained Earnings Account as at 30 September, 2019. Draw the stockholders' equity section of the balance sheet of the Company as at 30 September, 2019. C)

Step by Step Solution

3.42 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

A 15 July 2019 Cash Dividend Expense 8000 Retained Earnings 8000 20 July 2019 Revenue Reserve 600000 ... 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

Document Format ( 2 attachments)

PDF file Icon
635d869141d01_176438.pdf

180 KBs PDF File

Word file Icon
635d869141d01_176438.docx

120 KBs Word File

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

Mathematical Statistics With Applications In R

Authors: Chris P. Tsokos, K.M. Ramachandran

2nd Edition

124171133, 978-0124171138

More Books

Students also viewed these Accounting questions

Question

List three types of perceived risk and give an example of each?

Answered: 1 week ago