5. XYZ Limited was incorporated on January 4, 1985. The entity's reporting date is December 31st...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
5. XYZ Limited was incorporated on January 4, 1985. The entity's reporting date is December 31st of each year. On the date of incorporation, the entity issued 100,000,000 ordinary shares with a par value of $0.50 each. Since the date of incorporation the entity's share capital remains the same. However, on December 30, 2019 the entity made a 1 for 2 bonus issue after which it immediately made a 2 for 5 rights issue for $1.20 each. After the rights issue the entity declared dividends of $0.10 per share on December 31, 2019. Immediately before the issue the entity had the following balances: Property, plant and equipment Inventory Trade receivables Bank balance Long term loans Retained earnings Share premium Required: $250,000,000 $150,000,000 $80,000,000 $20,000,000 $375,000,000 $65,000,000 $10,000,000 a. Draft the statement of financial position before the bonus and rights issue. b. Prepare the relevant journal entries for the bonus and rights issue c. Prepare the relevant journal entry for the declaration of dividends d. Re-draft the statement of financial position as at December 31, 2019. 5. XYZ Limited was incorporated on January 4, 1985. The entity's reporting date is December 31st of each year. On the date of incorporation, the entity issued 100,000,000 ordinary shares with a par value of $0.50 each. Since the date of incorporation the entity's share capital remains the same. However, on December 30, 2019 the entity made a 1 for 2 bonus issue after which it immediately made a 2 for 5 rights issue for $1.20 each. After the rights issue the entity declared dividends of $0.10 per share on December 31, 2019. Immediately before the issue the entity had the following balances: Property, plant and equipment Inventory Trade receivables Bank balance Long term loans Retained earnings Share premium Required: $250,000,000 $150,000,000 $80,000,000 $20,000,000 $375,000,000 $65,000,000 $10,000,000 a. Draft the statement of financial position before the bonus and rights issue. b. Prepare the relevant journal entries for the bonus and rights issue c. Prepare the relevant journal entry for the declaration of dividends d. Re-draft the statement of financial position as at December 31, 2019.
Expert Answer:
Answer rating: 100% (QA)
a Statement of Financial Position before the bonus and rights issue XYZ Limited Statement of Financi... View the full answer
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
Students also viewed these accounting questions
-
Question 1 This question has two parts, (A) and (B). Answer both parts. 100% Liverpool plc is a company that manufactures a number of different types of electrical goods and has a year end of 31...
-
Good Harvest Corporation was incorporated on January 1, 2021, with authorized share capital of 300,000 shares at P20 par value. Record the transactions completed during the months of January and...
-
EX: let X ~ B (5, 0.4) X ~ B (7, 004) Xz ~ B ( 7 0.2) Find the dist. of Now Noint cik Date. 2 No. R X) q X + X 3 X + X
-
Seven financial experts participated in a stock market selection game. Their first choice had to be selected from 8 different resource stocks. All 7 experts picked the same resource stock. If the...
-
A straight emergency chute for an airplane is 16.0 ft long. In being tested, the top of the chute is 8.5 ft above the ground. What angle does the chute make with the ground?
-
Merit increases require a single performance number, while most incentive plans have multiple and varying performance measures. How can the PM system meet both needs?
-
During the year ended 30 June 2016, Beautiful Bottles Pty Ltd incurred the following costs in connection with its production activities. Raw materials purchases Factory electricity Indirect labour...
-
Ashley and Duncan just created their January 2019 income and expense statement. They spent their combined $3,500 gross monthly income on the following expenses: $350 for tithing, $1,000 on rent, $400...
-
Using the organization that your professor has approved, synthesize the organizations readiness for change. Evaluate whether or not to implement your new program, policy, practice, or procedure....
-
Question Be sure to be clear why you think the situation represents a case of each of the ethical issues you identify and identify which of these "indicators" are/were relevant in the situation you...
-
in Weissman v. City of New York 860 N.Y.S. 2d 393 (City of N.Y. Civil Court 2009), a legal case concerning Ken Weissman's missing boating equipment (stolen kayaks). the relevant historical facts are...
-
Explain what arguments the plaintiff (Mr. Henderson) could raise to the court to substantiate his lawsuit against the Condo Corporations. 2. Explain what arguments the defendant (Jefferson Property...
-
Rather he felt he was merely making systematic and rigorous a form of reasoning that is frequently used anyway. Can you think of some examples of using some approximation of an ideal type methodology...
-
How would you categorize the following situation according to the various measurement scales mentioned in the text? (a) Technical and economic factors of a city (b) Political and social factors of a...
-
Complete the following tasks from the description given below: a) Using the fact summary, create a use case diagram that shows the actors and business processes that take place when an incoming...
-
The Ranch 888 Noodle Company sells two types of dried noodles:ramen, at $6.50 per box, and chow fun, at $7.70 per box. So farthis year, the company has sold a total of 110,096 boxes ofnoodles,...
-
When facilitating the methylation or pseudouridylation of an rRNA, a snoRNA functions as a. a decoy. b. a scaffold. c. a guide. d. both b and c.
-
When an ncRNA functions as a decoy, it a. contains binding sites for many different proteins, thereby promoting the formation of a large complex. b. recognizes other ncRNAs and sequesters them,...
-
Suppose that the overexpression of a particular miRNA was associated with pancreatic cancer. Which of the following agents might be effective in treating this type of cancer? a. Enoxacin b. A DNA...
Study smarter with the SolutionInn App