Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 5 (10 Marks) Jude Corporation has been authorized to issue 20,000 $100 par value, 10%, non-cumulative preference shares and 1,000,000 no-par ordinary shares. The

image text in transcribed
Question 5 (10 Marks) Jude Corporation has been authorized to issue 20,000 $100 par value, 10%, non-cumulative preference shares and 1,000,000 no-par ordinary shares. The corporation assigned a $2.50 stated value to the ordinary shares. A December 31, 2014, the ledger contained the following balances pertaining to equity Share Captial-Preference Share Premium-Preference Share Capital Ordinary Share Premium-Ordinary Treasury Shares-Ordinary (1,000 shares) Share Premium-Treasury Retained Earnings 120,000 12,000 1,000,000 1,600,000 9,000 1,000 82,000 The preference shares were issued for land having a fair value of $132,000. All ordinary shares issued were for cash. In November,500ordinary shares were purchased for the treasury at a per share cost of S9. In December, 500 treasury shares were sold for $11 per share. No dividends were declared in 2014 Required Prepare the journal entries for the: 1. 2. 3. 4. Issuance of preference shares for land Issuance of ordinary shares for cash Purchase of treasury shares (ordinary) for cash Sale of treasury shares for cash

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

Audit Marketing

Authors: Bruno Camus

1st Edition

2708108735, 978-2708108738

More Books

Students also viewed these Accounting questions