On 1 January 2016 Otter Ltds share capital comprised 95 000 issued ordinary shares ($950 000) and
Question:
On 1 January 2016 Otter Ltd’s share capital comprised 95 000 issued ordinary shares ($950 000) and retained earnings of $350 000. During the year, the following transactions occurred.
Required
(a) Prepare the journal entries to record the above transactions.
(b) Prepare the equity section of the statement of financial position as at 31 December 2016.
(c) What are the requirements for a company to pay a dividend?
Step by Step Answer:
a April 1 Debit Cash 45000 Credit Share Capital 45000 June 15 Debit Retained Earnings 2375...View the full answer
Financial Accounting Reporting Analysis And Decision Making
ISBN: 9780730313748
5th Edition
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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