Hatch Company has two classes of share capital outstanding: 8%, 20 par preference and 5 par ordinary.
Question:
Hatch Company has two classes of share capital outstanding: 8%, £20 par preference and £5 par ordinary. At December 31, 2014, the following accounts were included in equity.
The following transactions affected equity during 2015.
Jan. 1 30,000 preference shares issued at £22 per share.
Feb. 1 50,000 ordinary shares issued at £20 per share.
June 1 2-for-1 share split (par value reduced to £2.50).
July 1 30,000 ordinary treasury shares purchased at £10 per share. Hatch uses the cost method.
Sept. 15 10,000 treasury shares reissued at £11 per share.
Dec. 31 The preference dividend is declared, and an ordinary dividend of 50 pence per share is declared.
Dec. 31 Net income is £2,100,000.
Instructions Prepare the equity section of the statement of financial position for Hatch Company at December 31, 2015.
Show all supporting computations.
Step by Step Answer:
Intermediate Accounting IFRS Edition
ISBN: 9781118443965
2nd Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield