Adityanath has the following when it comes to its shareholders equity on January 1st of the...
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Adityanath has the following when it comes to its shareholders equity on January 1st of the current year. The retained earnings were $2.4 million. The common shares were $300,000. The number of shares issued was 200,000. The contributed surplus was $350,000. In the4 previous year, Adityanath repurchased its common shares. The transaction ended up raising its share price, there were also excess proceeds relative to cost, which created the contributed surplus. In the current year, a few equity transactions occurred. The first transaction was that 14,000 shares were sold for $27 per share. These shares were sold on subscription and the first payment was for $11 per share. The second payment was for $16 per share, and payment was received on all the shares except for 3,000 of the shares which were later refunded. Afterwards, Adityanath repurchased 33,000 of its common shares for $31 per share, these shares were later retired. Afterwards, Adityanath sold 7,000 preferred and 4,000 common shares for $400,000. The common shares had a fair value of $35 per share. Which ASPE standards would apply here? Prepare journal entries for the current year. What kind of note disclosure is required? Why did the share price rise after the transaction in the previous year? Adityanath has the following when it comes to its shareholders equity on January 1st of the current year. The retained earnings were $2.4 million. The common shares were $300,000. The number of shares issued was 200,000. The contributed surplus was $350,000. In the4 previous year, Adityanath repurchased its common shares. The transaction ended up raising its share price, there were also excess proceeds relative to cost, which created the contributed surplus. In the current year, a few equity transactions occurred. The first transaction was that 14,000 shares were sold for $27 per share. These shares were sold on subscription and the first payment was for $11 per share. The second payment was for $16 per share, and payment was received on all the shares except for 3,000 of the shares which were later refunded. Afterwards, Adityanath repurchased 33,000 of its common shares for $31 per share, these shares were later retired. Afterwards, Adityanath sold 7,000 preferred and 4,000 common shares for $400,000. The common shares had a fair value of $35 per share. Which ASPE standards would apply here? Prepare journal entries for the current year. What kind of note disclosure is required? Why did the share price rise after the transaction in the previous year?
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ASPE Standards 1 Section 3251 Equity This standard deals with the accounting for and disclosure of e... View the full answer
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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