Question
Plants for Africa (Pty) Ltd is a company with branches situated all over South Africa, which stocks everything from pots, plants, trees and tools. The
Plants for Africa (Pty) Ltd is a company with branches situated all over South Africa, which stocks everything from pots, plants, trees and tools. The company has a 28 February year-end.
You have been provided with the following extract from the pre-adjusted trial balance as at 28 February 2022:
Notes:
Note 1. Share Capital: Class A On 28 February 2022, Plants for Africa (Pty) Ltd had 500 000 Class A shares of R1 each. The Class A shares have voting rights and no fixed distribution right.
Note 2. Share Capital: Class B On 28 February 2021, Plants for Africa (Pty) Ltd had 150 000 Class B shares of R2 each. On 1 September 2021, Plants for Africa (Pty) Ltd issued an additional 10 000 Class B shares at R2.50 per share.
The Class B shares have no voting rights and have a right to a fixed, cumulative distribution of 8% in preference of the Class A dividends.
Note 3. Dividends: The directors have recommended that the final Class B dividend for the year be accounted for. The directors declared a Class A dividend of 35 cents per share, the dividend payment was made on 20 March 2022.
Required -
1) Prepare the general journal entries required to process all the transactions in Note 3: Dividends in the records of Plants for Africa (Pty) Ltd for the financial year ended 28 February 2022. Show all calculations and prepare the answer in table format.
Step 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