Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

image text in transcribed

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.

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

Philosophy Of Auditing

Authors: Robert K. Mautz

19th Edition

0865390029, 978-0865390027

More Books

Students also viewed these Accounting questions

Question

What is the environment we are trying to create?

Answered: 1 week ago

Question

How can we visually describe our goals?

Answered: 1 week ago