Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2020, the Balance Sheet of Dayton Ltd. consisted of Assets of $3,800,000, Share Capital of $2,000,000 (2 million shares at $1), and

image text in transcribed
image text in transcribed
On January 1, 2020, the Balance Sheet of Dayton Ltd. consisted of Assets of $3,800,000, Share Capital of $2,000,000 (2 million shares at $1), and Retained Profits of $1,800,000. The following transactions took place during the year ended December 31, 2020: Feb 1 A bonus share of 1 for every 4 was declared at the current share price of $0.80 per share. Mar 15 The bonus shares were issued. June 30 $1,000,000 of 10-years 8% debentures were issued at a price of 93% of par value. Interest is paid semi-annually on 31 December and 30 June each year. Dayton Ltd. amortises debenture premium and discount using the straight-line method. Nov 15 A2 for 1 share split was announced. Dec 30 A cash dividend of $0.10 per share was declared. Required: Journalise the above transactions for the year ended December 31, 2020. Instructions: Required: Journalise the above transactions for the year ended December 31, 2020. Instructions Only use the following accounts (use the exact wording) bank cash debentures discount on overdraft payable debenture issue dividend dividend general interest expenses payable reserve expense interest net profit premium on retained payable debenture earnings issue share capital share dividend payable When recording journal entries, always present debit first then credits. fumurinurnal has a debit

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

Recommended Textbook for

Not For Profit Audit Committee Best Practices

Authors: Warren Ruppel

1st Edition

0471697419, 978-0471697411

More Books

Students also viewed these Accounting questions