Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below is the shareholders' equity section of Samson Corporation's statement of financial position as at January 1, 2019. Shareholders' Equity: Ordinary shares, $5 par value,

image text in transcribedimage text in transcribed

Below is the shareholders' equity section of Samson Corporation's statement of financial position as at January 1, 2019. Shareholders' Equity: Ordinary shares, $5 par value, 500,000 shares authorized, 120,000 $600,000 shares issued and outstanding Share premium: Ordinary shares 360,000 Retained earnings 750,000 During 2019, the following transactions occurred in sequential order: (1) Samson issued for cash 100,000 ordinary shares at $12 per share. (ii) Samson issued for cash 8,000 of its 10,000 authorized 8% noncumulative preference shares, $100 at par value, for $120 per share. (iii) Mr Kam bought 1,000 ordinary shares of Samson Corporation from Miss Cheung, (iv) Samson repurchased 1,000 of its own ordinary shares from the stock market for the treasury at a cost of $40,000. (v) Samson reissued 600 of these treasury shares for cash of $30,000. (vi) The board of directors declared a total dividend of $300,000. It was scheduled to be paid on March 31, 2020. Required: (Show all calculations and round ALL answers to 2 decimal places.) a. Prepare the journal entries for each of the above transactions for 2019. If a transaction does not require any entry, state No entry". (14 marks) (Explanation for the journal entry is NOT required.) b. How many ordinary shares are outstanding? (3 marks) c. What was the dividend declared during the year on each share of ordinary shares? (4 marks) d. Explain how the transaction in (vi) affects the corporation's revenue or expense of the period and the effect on the shareholders equity

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

Accounting Reform In Transition And Developing Economies

Authors: Robert W. McGee

1st Edition

0387257071, 9780387257075

More Books

Students also viewed these Accounting questions

Question

Purpose: What do we seek to achieve with our behaviour?

Answered: 1 week ago

Question

An action plan is prepared.

Answered: 1 week ago