Question
Marigold Limited has been authorized to issue 20,700 103 par value, 10%, non-cumulative preference shares and 958,976 no-par ordinary shares. The corporation assigned a 2.56
Marigold Limited has been authorized to issue 20,700 103 par value, 10%, non-cumulative preference shares and 958,976 no-par ordinary shares. The corporation assigned a 2.56 stated value to the ordinary shares. At December 31, 2017, the ledger contained the following balances pertaining to equity.
Share CapitalPreference | 121,540 | |
Share PremiumPreference | 14,460 | |
Share CapitalOrdinary | 958,976 | |
Share PremiumOrdinary | 1,858,300 | |
Treasury SharesOrdinary (900 shares) | 8,100 | |
Share PremiumTreasury | 900 | |
Retained Earnings | 81,300 |
The preference shares were issued for land having a fair value of 136,000. All ordinary shares issued were for cash. In November, 1,350 ordinary shares were purchased for the treasury at a per share cost of 9. In December, 450 treasury shares were sold for 11 per share. No dividends were declared in 2017.
Prepare the journal entries:
(1) | Issuance of preference shares for land. | |
(2) | Issuance of ordinary shares for cash. | |
(3) | Purchase of treasury shares (ordinary) for cash. | |
(4) | Sale of treasury shares for cash. |
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