Question
Question 2 Monty plc has two classes of share capital outstanding: 8%, 20 par preference and 5 par ordinary. At December 31, 2021, the following
Question 2
Monty plc has two classes of share capital outstanding: 8%, 20 par preference and 5 par ordinary. At December 31, 2021, the following accounts were included in equity.
| Share CapitalPreference, 159,600 shares | 3,192,000 | |
| Share CapitalOrdinary, 1,970,000 shares | 9,850,000 | |
| Share PremiumPreference | 193,000 | |
| Share PremiumOrdinary | 27,534,000 | |
| Retained Earnings | 4,424,000 |
The following transactions affected equity during 2022.
| Jan. 1 | 29,100 preference shares issued at 22 per share. | |
| Feb. 1 | 47,100 ordinary shares issued at 20 per share. | |
| June 1 | 2-for-1 share split (par value reduced to 2.50). | |
| July 1 | 32,500 ordinary treasury shares purchased at 11 per share. Monty uses the cost method. | |
| Sept. 15 | 10,400 treasury shares reissued at 12 per share. | |
| Dec. 31 | The preference dividend is declared, and an ordinary dividend of 46 pence per share is declared. | |
| Dec. 31 | Net income is 2,112,000. |
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The Routledge Companion To Auditing
Authors: David Hay, W. Robert Knechel, Marleen Willekens
1st Edition
1138363081, 978-1138363083
