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QUESTION 7 (24 marks) Below is the shareholders' equity section of Samson Corporation's statement of financial position as at January 1, 2019. Shareholders' Equity $600,000

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QUESTION 7 (24 marks) Below is the shareholders' equity section of Samson Corporation's statement of financial position as at January 1, 2019. Shareholders' Equity $600,000 Ordinary shares, $5 par value, 500,000 shares authorized, 120,000 shares issued and outstanding Share premium: Ordinary shares Retained earnings 360,000 750,000 During 2019, the following transactions occurred in sequential order: (i) 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: (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) 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. (3 marks) End of Section B -End of Paper 10

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