You guys have any idea of which goes in which?
Troubador Limited has the following equity accounts on January 1, 2020: Share Capital - Ordinary (6 par, 100,000 shares issued) 600,000, Share Premium-Ordinary 150,000, and Retained Earnings 100,000. In 2020, the company had the following treasury share transactions. April. 1: Purchased 5,000 shares at 10 per share. May 1: Sold 800 shares at 13 per share. Sept. 1: Sold 2,000 shares at 10 per share. Nov. 1: Sold 1,500 shares at 7 per share. Troubador uses the cost method of accounting for treasury shares. In 2020, the company reported net income of 40,000. Instructions a. Journalize the treasury share transactions, and prepare the closing entry at December 31, 2020, for net income. b. Open T-accounts for (1) Share Premium-Treasury, (2) Treasury Shares, and (3) Retained Earnings. Post to these accounts (without using a posting reference). c. Prepare the equity section for Troubador Limited at December 31, 2020. Below you find the comparative statements of financial position for the company Rain Ltd. 2020 2019 Assets Land Equipment Accumulated depreciation - equipment Inventory Accounts receivable Cash Total Equity and Liabilities Share capital - ordinary (EUR 1 par) Retained earnings Bonds payable Accounts payable 73 000 180 000 - 66 000 170 000 85 000 83 000 525 000 100 000 200 000 - 34 000 187 000 71 000 33 000 557 000 216 000 194 000 80 000 35 000 525 000 174 000 136 000 200 000 47 000 557 000 Additional Information: 1. Net income for 2020 was 125,000. 2. Equipment which cost 20,000 and had accumulated depreciation of C3,600 was sold for 7,000. 3. Cash dividends of 67,000 were declared and paid. 4. Bonds payable amounting to 120,000 were redeemed for cash 120,000 5. Ordinary shares were issued for 42,000 cash. 6. Land was sold for its book value of 27,000. Instructions Prepare a statement of cash flows for 2020 using the Indirect method. Presented below is a list of possible transactions. 1. Recorded sales of product. 2. Share issue as payment for an invoice reflecting incorporation fees. 3. Recorded wage expense of 30,000. The cash paid was 20,000; the difference was due to various amounts withheld. 4. Purchased inventory for 35,000 on account (assume perpetual system is used). 5. A firm selis its accounts receivable to a factor for a fee of 2%. 6. Recorded employer's payroll taxes. 7. Recorded bonuses due to employees. 8. Honored warranty contracts in the period of sale, reducing the asset repair parts. 9. Recorded a liability on a lawsuit that the company will probably lose. 10. Recorded cash sales of 75,260, which includes 10% VAT. Instructions Set up a table using the format shown below and analyze the effect of the above transactions on the financial statement categories indicated. Transaction 1 Assets ? ? Liabilities ? 2 Equity ? ? 2 For each of the ten transactions, replace the "?" with one of the following 1: Increase D: Decrease NE: No effect Presented below is a list of possible transactions. 1. Recorded sales of product. 2. Share issue as payment for an invoice reflecting incorporation fees. 3. Recorded wage expense of 30,000. The cash paid was 20,000; the difference was due to various amounts withheld. 4. Purchased inventory for 35,000 on account (assume perpetual system is used). 5. A firm sells its accounts receivable to a factor for a fee of 2%. 6. Recorded employer's payroll taxes. 7. Recorded bonuses due to employees. 8. Honored warranty contracts in the period of sale, reducing the asset repair parts. 9. Recorded a liability on a lawsuit that the company will probably lose. 10. Recorded cash sales of 75,260, which includes 10% VAT. Instructions Set up a table using the format shown below and analyze the effect of the above transactions on the financial statement categories indicated. Transaction 1 2 Assets 2 Llabilities ? ? Equity ? ? ? For each of the ten transactions, replace the "?" with one of the following 1: Increase D: Decrease NE: No effect
