Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need help solving this by hand, using T accounts: Date, Account Title, Debit, Credit. Exercise 5 45 points) Loki Limited has the following equity accounts
Need help solving this by hand, using T accounts: Date, Account Title, Debit, Credit.
Exercise 5 45 points) Loki Limited has the following equity accounts on January 1, 2021: Share Capital-Ordinary (5 par, 150,000 shares issued) 750,000 Share Premium-Ordinary 250,000 Retained Earnings 120,000. . . In 2021, the company had the following equity related transactions. March: Issued 15,000 ordinary shares at a price of 15. May: The board of directors announced a share dividend equal to 0.50 per share. June: The dividend is paid August: The company repurchases 12,000 shares at 10 per share. September: Sold 6,000 shares at 13 per share. October: Sold 6,000 shares at 6 per share. . . Loki uses the cost method of accounting for treasury shares. In 2021, the company reported net income of 40,000. Instructions a. Journalize the transactions, and prepare the closing entries as of December 31, 2021, for net income and cash dividends. b. Open T-accounts for (1) Share Capital Ordinary; (2) Share Premium Ordinary; (3) Treasury Shares; (4) Share Premium-Treasury, (5) Retained Earnings. Post to these accounts (without using a posting reference). c. Prepare the equity section for Loki Limited Limited as of December 31, 2021Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started