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  • AUD315-Activity 1 - MARTIN, Lorraine

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    LorraineMartin
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    The document contains accounting entries and calculations for a company over multiple periods in 2021. In January, the company issued 30,000 shares at a premium of $50 per share, raising $4.5 million. In February, it issued 2,000 more shares at a $25 premium, raising $250,000. In March, it repurchased 5,000 shares for $600,000. In December, it issued 20,000 more shares at a $25 premium, raising $1.5 million. Calculations at year-end show total shareholders' equity of $8.95 million, with 74,000 shares outstanding after a 2:1 stock split.

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    The document contains accounting entries and calculations for a company over multiple periods in 2021. In January, the company issued 30,000 shares at a premium of $50 per share, raising $4.5 million. In February, it issued 2,000 more shares at a $25 premium, raising $250,000. In March, it repurchased 5,000 shares for $600,000. In December, it issued 20,000 more shares at a $25 premium, raising $1.5 million. Calculations at year-end show total shareholders' equity of $8.95 million, with 74,000 shares outstanding after a 2:1 stock split.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    32 views3 pages

    AUD315-Activity 1 - MARTIN, Lorraine

    Uploaded by

    LorraineMartin
    The document contains accounting entries and calculations for a company over multiple periods in 2021. In January, the company issued 30,000 shares at a premium of $50 per share, raising $4.5 million. In February, it issued 2,000 more shares at a $25 premium, raising $250,000. In March, it repurchased 5,000 shares for $600,000. In December, it issued 20,000 more shares at a $25 premium, raising $1.5 million. Calculations at year-end show total shareholders' equity of $8.95 million, with 74,000 shares outstanding after a 2:1 stock split.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 3

    No.

    1
    January 1 Cash 4,500,000.00
    Ordinary shares 3,000,000.00
    Share premium
    30,000 x (150-100) 1,500,000.00

    February 1 Ordinary shares 200,000.00


    Share premium 50,000.00
    Cash 250,000.00

    March 1 Treasury Stock 600,000.00


    Cash 600,000.00

    October 1 Share premium 1,100,000.00


    Cash 1,100,000.00

    November 15 No entry

    December 15 Cash 1,500,000.00


    Ordinary shares 1,000,000.00
    Share premium
    20,000 x (100 - 75) 500,000.00

    December 31 Income summary 2,000,000.00


    Expenses 2,000,000.00

    No. 2

    Share Capital (shares) Share premium Treasury shares (shares)


    Date
    January 1 3,000,000.00 30,000.00 150,000.00 - -
    February 1 200,000.00 2,000.00 50,000.00 - -
    March 1 - - - - 600,000.00 5,000.00
    October 1 - - 1,100,000.00 - -
    November 15 - - - - -
    December 15 1,000,000.00 20,000.00 500,000.00 - -
    December 31 - - - - -

    No. 3

    Share capital ₱ 4,200,000.00


    Add: Share premium 3,350,000.00
    Retained earnings - net income 2,000,000.00
    Less: Treasury shares
    (5,000 x 120) 600,000.00
    Total shareholders' equity ₱ 8,950,000.00

    Shares before share split


    (30,000 + 2,000) ₱ 32,000.00
    Multiply by share split 2
    Share issued after share split 64,000.00
    Less: Treasury shares after share split
    (5,000 x 2) 10,000.00
    Shares outstanding after share split 54,000.00
    Shares issued after share split 20,000
    Total shares outstanding ₱ 74,000.00
    Retained earnings

    -
    -
    -
    -
    -
    -
    -

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