The correct ledger entries needed to record the issue of £400,000 £1 shares at a premium of 60p, and paid for by cheque, in full, would be Debit Credit £ £ Share premium Share capital Bank
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The correct ledger entries needed to record the issue of £400,000 £1 shares at a premium
of 60p, and paid for by cheque, in full, would be
Debit Credit
£ £
Share premium
Share capital
Bank
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- The correct Journal entry needed to record the issue of 200,000 $1 shares at a premium of 30p, and paidfor by cheque, in full, would beA DEBIT share capital account $200,000CREDIT share premium account $60,000CREDIT bank account $140,000B DEBIT bank account $260,000CREDIT share capital account $200,000CREDIT share premium account $60,000C DEBIT share capital account $200,000CREDIT share premium account $60,000CREDIT bank account $260,000D DEBIT bank account $200,000DEBIT share premium account $60,000CREDIT share capital account $260,000A conversion of a face value $1 million convertible bond for $1 million of common stock would most likely be: C . reported as supplementary information to the cash fl ow statement.(a) Calculate current Ratio and Quick Ratio from the followinginformation:Total Assets Rs. 350000Fixed Assets Rs. 175000Investment Rs. 70000Fictitious Assets Rs. 5000Share holders fund Rs. 200000Long term Debts Rs. 100000Inventory Rs. 45000(b) From the following information calculate the stock turnoverratio.Sales Rs. 200000, G.P 25% on cost, Opening Stock was 1/3rd of thevalue of closing stock. Closing stock was 30% of sales
- Peoples Bank Ltd.Balance sheetAs at 31/03/2021Assets $(000) Liab. & Equity $(000)Cash 50,000 Payables 50,000Short term Invest 50,000 short term deposits 500,000Long term Invest. 180,000 long term deposits. 180,000Loans 550,000 Long-term bonds 50,000Other 50,000 Equity 100,000Total 880,000 880,000 The long-term investment portfolio comprises shares in an associate company (25%), azero-coupon bond (25%), government fixed rate bonds (40) and shares in publicly tradedcompanies (10%).The loan portfolio is composed as follows: 10% residential mortgages, 50% consumerand 40% commercial. The loan portfolio has a 5% delinquency, and the average return is8%. Fixed rate loans are 60% and floating rate 40%.Deposits are primarily short term. The renewal rate is declining and expected to continueinto the medium term. The average deposit rate is 4%.Interest rates are expected to rise in the short term for both, loans and deposits. A. Based on the balance sheet and the information above, identify…Peoples Bank Ltd.Balance sheetAs at 31/03/2021Assets $(000) Liab. & Equity $(000)Cash 50,000 Payables 50,000Short term Invest 50,000 short term deposits 500,000Long term Invest. 180,000 long term deposits. 180,000Loans 550,000 Long-term bonds 50,000Other 50,000 Equity 100,000Total 880,000 880,000 The long-term investment portfolio comprises shares in an associate company (25%), azero-coupon bond (25%), government fixed rate bonds (40) and shares in publicly tradedcompanies (10%).The loan portfolio is composed as follows: 10% residential mortgages, 50% consumerand 40% commercial. The loan portfolio has a 5% delinquency, and the average return is8%. Fixed rate loans are 60% and floating rate 40%.Deposits are primarily short term. The renewal rate is declining and expected to continueinto the medium term. The average deposit rate is 4%.Interest rates are expected to rise in the short term for both, loans and deposits. A. Recommend to management two strategies to reduce each risk B.…Analyse the information given in the table below and answer the questions below:Details Company A Company BShare price R60 R90Number of ordinary shares issued 10 000 000 10 000 000Market capitalisation 600 000 000 900 000 000Annual earnings R90 000 000 R120 000 000Earnings per share A BPrice/ Earnings (P/ E) Ratio C DREQUIRED:Please note that all theoretical answers should be in your own words and not directly from yourtextbook or any other source. Remember to add a list of resources (correctly referencedaccording to the Harvard method) at the end of your assignment. Calculate the missing amounts for A ‐ D.Round off your answers to 2 decimal places.
- 2. The listed App AG has issued shares with a nominal value of €1. In t5, a capital increase is carried out at a price of €21 per share. App AG receives €10.5 million via bank transfer. How to book in t5? Specific standards are not specified.The company issued 2,500, P125 par ordinary shares for an outstanding bank loan ofP350,000. On this date, shares are quoted at P150 per share. Compute for the increase in share premium* a. ₱0 b. ₱25,000 c. ₱37,500 d. ₱62,500Crane Limited had $2.39 million of bonds payable outstanding and the unamortized premium for these bonds amounted to $44,600. Each $1,000 bond was convertible into 20 preferred shares. All bonds were then converted into preferred shares. The Contributed Surplus - Conversion Rights account had a balance of $21,500. Assume that the company follows IFRS. a. Assuming that the book value method was used, what entry would be made? Account Titles and Explanation Debit Credit b. Assume that Crane Ltd. offers $9,000 to induce early conversion. What journal entry would be made? Account Titles and Explanation Debit Credit
- Pukri Ltd is deciding whether to pay out R90 000 in excess cash in the form of an extradividend or a share repurchase. Current profits are R2,40 per share and the share sells forR20. The abbreviated balance sheet before paying out the dividend is:Equity 240 000 Bank/cash 90 000Debt 160 000 Other Assets 310 000400 000 400 000Evaluate each alternative (i.e: pay the dividend or repurchase the shares) by:1.1 Calculating the number of shares in issue 1.2 The dividends per share (for the first alternative, i.e. pay the dividend) 1.3 Calculate:1.3.1 The new share price 1.3.2 The EPS 1.3.3 The price-earnings ratioPukri Ltd is deciding whether to pay out R90 000 in excess cash in the form of an extradividend or a share repurchase. Current profits are R2,40 per share and the share sells forR20. The abbreviated balance sheet before paying out the dividend is:Equity 240 000 Bank/cash 90 000Debt 160 000 Other Assets 310 000400 000 400 000Evaluate each alternative (i.e: pay the dividend or repurchase the shares) by:1.3 Calculate:1.3.1 The new share price1. The following balances were obtained from the books of The Hartland Ltd as at December 31, 2015:DETAILS DR CRPremises800,00010% Mortgage250,000Retained earnings40,000Goodwill100,000Debtors110,000Creditors65,000General reserves30,000Management fees30,000Ordinary shares @ $0.50200,0005% Preference shares @ $1200,000Share premium50,000Motor vehicle80,000Prov. for depreciation on motor vehicle12,00010% Debenture120,000Mortgage interest7,000Debenture interest5,000Cost of sales750,000Closing stock80,000Insurance20,000Wages & salaries60,000Interim ordinary shares dividend2,000Bank53,000Sales1,100,000Commission received4,0002,084,0002,084,000Notes:a. Provide for depreciation on motor vehicle at 5% on the reducing balanceb. Insurance is prepaid by $4,000 while wages and salaries is owing by $20,000c. The goodwill should be written down by 25%d. Transfer $25,000 from profits to the general reservese. Corporation tax is estimated at $30,000f. The…