Melbourne Corporation was set up in 2016. The shareholders equity accountsof the company, with balances on 1 January 2018, are as follows:Share CapitalOrdinary, $20 par value (500,000 shares authorized,375,000 shares issued and 350.000 shares outstanding)Share Capital-6% Cumulative Preference, no-par (150,000 shares authorized,7.500,00080,000 shares issued and outstanding)*Share Capital-8% Non -cumulative Preference, no-par (200,000 shares authorize120,000 shares issued and outstanding)Share Premium2,400,0007,200,000Retained Eamings825,0008,500,000Treasury Share (25,000 shares, at cost)450,000All these shares were issued on 1 January 2016The following shares transactions occurred during the year of 2018JanIssued 30,000 non-cumulative preference shares at S60Apr10 Issued 10,000 ordinary shares at $21Jun6Sold 25,000 treasury share for $24 per shareJulyIssued 26,000 cumulative preference shares at $3023 Purchased 21,000 shares of treasury share for S18 per share1NovDec1Sold 13,000 treasury share for $15 per shareDec28 Declared So.05 dividend per ordinary shareDec31Declared dividend for all the preference sharesWhile there is no outstanding dividends before 2017No dividend was paid for the year of 2017 for all the preference shares雖然2017年之前,沒有欠付任何股息,但白2017年起,並無付任何優先股股息REQUIRED:Calculate the outstanding shares of each class of share capital at 31 December, 2018Calculate the total dividends for each class of share capital at 31 December, 2018Journalize the entries to record all the transactionsPrepare a statement of retained earnings for the year ended December 31, 2018assume that the net profit for the year was $720,000Prepare the Shareholders' Equity section of the statement of financial position.as at 31 December, 2018

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Asked Nov 2, 2019
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Melbourne Corporation was set up in 2016. The shareholders equity accounts
of the company, with balances on 1 January 2018, are as follows:
Share CapitalOrdinary, $20 par value (500,000 shares authorized,
375,000 shares issued and 350.000 shares outstanding)
Share Capital-6% Cumulative Preference, no-par (150,000 shares authorized,
7.500,000
80,000 shares issued and outstanding)*
Share Capital-8% Non -cumulative Preference, no-par (200,000 shares authorize
120,000 shares issued and outstanding)
Share Premium
2,400,000
7,200,000
Retained Eamings
825,000
8,500,000
Treasury Share (25,000 shares, at cost)
450,000
All these shares were issued on 1 January 2016
The following shares transactions occurred during the year of 2018
Jan
Issued 30,000 non-cumulative preference shares at S60
Apr
10 Issued 10,000 ordinary shares at $21
Jun
6
Sold 25,000 treasury share for $24 per share
July
Issued 26,000 cumulative preference shares at $30
23 Purchased 21,000 shares of treasury share for S18 per share
1
Nov
Dec
1
Sold 13,000 treasury share for $15 per share
Dec
28 Declared So.05 dividend per ordinary share
Dec
31
Declared dividend for all the preference shares
While there is no outstanding dividends before 2017
No dividend was paid for the year of 2017 for all the preference shares
雖然2017年之前,沒有欠付任何股息,但白2017年起,並無付任何優先股股息
REQUIRED:
Calculate the outstanding shares of each class of share capital at 31 December, 2018
Calculate the total dividends for each class of share capital at 31 December, 2018
Journalize the entries to record all the transactions
Prepare a statement of retained earnings for the year ended December 31, 2018
assume that the net profit for the year was $720,000
Prepare the Shareholders' Equity section of the statement of financial position.
as at 31 December, 2018
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Melbourne Corporation was set up in 2016. The shareholders equity accounts of the company, with balances on 1 January 2018, are as follows: Share CapitalOrdinary, $20 par value (500,000 shares authorized, 375,000 shares issued and 350.000 shares outstanding) Share Capital-6% Cumulative Preference, no-par (150,000 shares authorized, 7.500,000 80,000 shares issued and outstanding)* Share Capital-8% Non -cumulative Preference, no-par (200,000 shares authorize 120,000 shares issued and outstanding) Share Premium 2,400,000 7,200,000 Retained Eamings 825,000 8,500,000 Treasury Share (25,000 shares, at cost) 450,000 All these shares were issued on 1 January 2016 The following shares transactions occurred during the year of 2018 Jan Issued 30,000 non-cumulative preference shares at S60 Apr 10 Issued 10,000 ordinary shares at $21 Jun 6 Sold 25,000 treasury share for $24 per share July Issued 26,000 cumulative preference shares at $30 23 Purchased 21,000 shares of treasury share for S18 per share 1 Nov Dec 1 Sold 13,000 treasury share for $15 per share Dec 28 Declared So.05 dividend per ordinary share Dec 31 Declared dividend for all the preference shares While there is no outstanding dividends before 2017 No dividend was paid for the year of 2017 for all the preference shares 雖然2017年之前,沒有欠付任何股息,但白2017年起,並無付任何優先股股息 REQUIRED: Calculate the outstanding shares of each class of share capital at 31 December, 2018 Calculate the total dividends for each class of share capital at 31 December, 2018 Journalize the entries to record all the transactions Prepare a statement of retained earnings for the year ended December 31, 2018 assume that the net profit for the year was $720,000 Prepare the Shareholders' Equity section of the statement of financial position. as at 31 December, 2018

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Step 1

Hello, since you have posted a question with multiple sub-parts, we will solve first three subparts for you. To get remaining sub-part solved please repost the complete question and mention the sub-parts to be solved. Thanks

a.)  Outstanding shares of each class on 31st Dec 2018 -  Please see attached tables for this.

For calculation of value of treasury stcok & additional paid in capital, please refer step 2

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Step 2

Here we have posted some part of journal entries related to issue, purchase an sale of shares.   ( also, we can deduce the balance of additional paid in capital from the journal entries posted here)

Rest of the journals related to dividend are in next steps. 

Particulars
Debit bank A/c
Credit Share capital 8% non cumulative preference shares
Amt in $
Date
Treasury shares-par value is 20$
1800000
Jan 1 2018
1800000
Opening balance- 25000 shares
Sale of 25000 shares
Purchase of 21000 shares
450000
To record issue of 30000 shares @ $60
500000
Debit bank A/c
Credit share capital-ordinary shares
Credit share premium
420000
Arpil 10 2018
210000
200000
10000
To record issue of 10000 shares $21
Sale of 13000 shares
8000 shares closing balance
Debit bank A/c
Credit treasury Stock a/c
Credit Additional paid in capital
To record sale of 25000 treasury shares $24
260000
110000
Jun 6 2018
600000
500000
100000
Debit bank A/c
Credit Share capital 6 % cumulative preference shares
Jul 1 2018
780000
780000
To record issue of 26000 shares $30
Debit treasury stock a/c
Credit bank a/c
420000
Nov 23 2018
420000
to record purchase of 21000 treasury stock @$18
Debit bank A/c
Debit Additional paid in capital
Dec1 2018
195000
65000
Credit treasury Stock a/c
To record sale of 13000 treasury shares@$15
260000
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Particulars Debit bank A/c Credit Share capital 8% non cumulative preference shares Amt in $ Date Treasury shares-par value is 20$ 1800000 Jan 1 2018 1800000 Opening balance- 25000 shares Sale of 25000 shares Purchase of 21000 shares 450000 To record issue of 30000 shares @ $60 500000 Debit bank A/c Credit share capital-ordinary shares Credit share premium 420000 Arpil 10 2018 210000 200000 10000 To record issue of 10000 shares $21 Sale of 13000 shares 8000 shares closing balance Debit bank A/c Credit treasury Stock a/c Credit Additional paid in capital To record sale of 25000 treasury shares $24 260000 110000 Jun 6 2018 600000 500000 100000 Debit bank A/c Credit Share capital 6 % cumulative preference shares Jul 1 2018 780000 780000 To record issue of 26000 shares $30 Debit treasury stock a/c Credit bank a/c 420000 Nov 23 2018 420000 to record purchase of 21000 treasury stock @$18 Debit bank A/c Debit Additional paid in capital Dec1 2018 195000 65000 Credit treasury Stock a/c To record sale of 13000 treasury shares@$15 260000

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Step 3

b) Total dividends for each clas...

Dividends for:
Dec-28 For year 2018 Ordinary shares
Dec-31 For year 2018 8% non cumulative prefer
Dec-31 6% cumulative preference shares
For year 2017 & 2018
For year 2018
Shares number
Share value
Dividend to be given Dividend Va
385000
720000
7700000 $ 0.05
360000
150000
9000000
8%
6%
6%
80000
2400000
288000
26000
780000
46800
Total
1439800
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Dividends for: Dec-28 For year 2018 Ordinary shares Dec-31 For year 2018 8% non cumulative prefer Dec-31 6% cumulative preference shares For year 2017 & 2018 For year 2018 Shares number Share value Dividend to be given Dividend Va 385000 720000 7700000 $ 0.05 360000 150000 9000000 8% 6% 6% 80000 2400000 288000 26000 780000 46800 Total 1439800

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