Jackson Corporation was authorized to issue 20,000 shares of $50 par value ordinary shares and 3,000 shares of $100 par value, 5% cumulative preference shares. Shown below are some selected account balances for Jackson Corporation at 31 December 2020: Share Capital: Ordinary Share premium: ordinary Share Capital: Preference Share Share premium: Preference Retained eamings $500,000 $250,000 $300,000 $24,000 $650,000 During 2021, the following events occurred: 11 June Purchased 2,000 treasury shares at $65 per ordinary share. 10 Aug Reissued 1,000 treasury shares acquired on 11 June at a price of $70 per share. 31 Dec Declared dividend of $1 per ordinary share and 5% dividend for preference shares. Dividend will be payable in Jan 2022. Income statement for the year ended 31 December 2021 showed a net income of $259,000. Required a) Prepare the necessary entries for the above events. (No narratives required.) b) Prepare the shareholders' equity section of Jackson Corporation's statement of financial position at 31 December 2021 according to HKFRS requirements.

Jackson Corporation was authorized to issue 20,000 shares of $50 par value ordinary shares and 3,000 shares of $100 par value, 5% cumulative preference shares. Shown below are some selected account balances for Jackson Corporation at 31 December 2020: Share Capital: Ordinary Share premium: ordinary Share Capital: Preference Share Share premium: Preference Retained eamings $500,000 $250,000 $300,000 $24,000 $650,000 During 2021, the following events occurred: 11 June Purchased 2,000 treasury shares at $65 per ordinary share. 10 Aug Reissued 1,000 treasury shares acquired on 11 June at a price of $70 per share. 31 Dec Declared dividend of $1 per ordinary share and 5% dividend for preference shares. Dividend will be payable in Jan 2022. Income statement for the year ended 31 December 2021 showed a net income of $259,000. Required a) Prepare the necessary entries for the above events. (No narratives required.) b) Prepare the shareholders' equity section of Jackson Corporation's statement of financial position at 31 December 2021 according to HKFRS requirements.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

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Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first year, the company has the following transaction: Mar. 1, issued 40,000 shares of preferred stock at $20.50 per share. Journalize the transaction.
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