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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)
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A 15 July 2019 Cash Dividend Expense 8000 Retained Earnings 8000 20 July 2019 Revenue Reserve 600000 ...Get Instant Access to Expert-Tailored Solutions
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