Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Honda Company has two classes of share capital outstanding: 7%, Tk 200 par preference and Tk 60 par ordinary. At December 31, 2018, the following

Honda Company has two classes of share capital outstanding: 7%, Tk 200 par preference and Tk 60 par ordinary. At December 31, 2018, the following accounts were included in equity. Share CapitalPreference, 50,000 shares Tk 10,000,000 Share CapitalOrdinary, 2,50,000 shares 15,000,000 Share PremiumPreference 250,000 Share PremiumOrdinary 2,500,000 Retained Earnings 4,500,000 The following transactions affected equity during 2015. Jan. 1 30,000 preference shares issued at Tk 215 per share. Feb. 1 50,000 ordinary shares issued at Tk 65 per share. June 1 2-for-1 share split (par value reduced to Tk 30). July 1 10,000 ordinary treasury shares purchased at Tk 70 per share. Honda uses the cost method. Sept. 15 5,000 treasury shares reissued at Tk 75 per share. Oct. 30 2,000 treasury shares reissued at Tk 68 per share. Dec. 31 The preference dividend is declared, and an ordinary dividend of 50 paisa per share is declared. Required: Prepare the journal entries to record the above transactions.

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

Students also viewed these Accounting questions

Question

7-16 Compare Web 2.0 and Web 3.0.

Answered: 1 week ago