tong Problem 1:Jordan Company has the following amounts in the Equity section as of January 1, 200 Share Capital - Preference, 10%, $100 par (20,000 shares authorized, 2,000 shares issued and outstanding) Share Capital - Ordinary, $5 par (100,000 shares authorized, 20,000 shares issued and outstanding) Share Premium - Preference Retained earnings 200,000 100,000 125,000 750,000 1,175,000 Total During 2020, Jordan has the following transactions Apr. 1 Purchased 3,000 shares of its own outstanding ordinary shares for $30 per share (cost method) May 31 Reissued 1,000 treasury shares in exchange for land valued at $25,000 July 1 Declared and issued a 2 for 1 share split on ordinary share. July 31 Declared a 10% share dividend on the outstanding ordinary shares when the market price was $40 per share. Sep 1 Issued the share dividend. Oct 1 Reissued the remaining 2,000 treasury shares at $35 per share. Dec. 31 Declared the annual 2020 dividend on preference shares and $3 per share dividend on ordinary shares. Requirements: a. Journalize the transactions b. Prepare the Equity section as of December 31, 2020, assuming that the net income for the year is $400,000
tong Problem 1:Jordan Company has the following amounts in the Equity section as of January 1, 200 Share Capital - Preference, 10%, $100 par (20,000 shares authorized, 2,000 shares issued and outstanding) Share Capital - Ordinary, $5 par (100,000 shares authorized, 20,000 shares issued and outstanding) Share Premium - Preference Retained earnings 200,000 100,000 125,000 750,000 1,175,000 Total During 2020, Jordan has the following transactions Apr. 1 Purchased 3,000 shares of its own outstanding ordinary shares for $30 per share (cost method) May 31 Reissued 1,000 treasury shares in exchange for land valued at $25,000 July 1 Declared and issued a 2 for 1 share split on ordinary share. July 31 Declared a 10% share dividend on the outstanding ordinary shares when the market price was $40 per share. Sep 1 Issued the share dividend. Oct 1 Reissued the remaining 2,000 treasury shares at $35 per share. Dec. 31 Declared the annual 2020 dividend on preference shares and $3 per share dividend on ordinary shares. Requirements: a. Journalize the transactions b. Prepare the Equity section as of December 31, 2020, assuming that the net income for the year is $400,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 67E: Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its...
Related questions
Question
please help me
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning