The equity sections of balance sheets of Good Luck Trading Company Ltd as at the close...

  

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The equity sections of balance sheets of Good Luck Trading Company Ltd as at the close of two years follows:- Stockholders' equity as at 30 June, 2019 Common stock Rs. 50 par value 60,000 shares authorized and 35,000 shares issued and outstanding. Premium on Common Stock Retained Earnings Total Equity Stockholders' Equity as at 30 June, 2020 Common stock Rs. 50 par value 60,000 shares authorized and 45,000 shares issued and outstanding 2,000 common stocks on treasury. Premium on Common Stock Retained Earnings Less: Cost of treasury stock Total Equity During the year 2019-20 the following events took place: - 20 August 2019 15 September 2019 30 September 2019 15 March 2020 05 April 2020 20 June 2020 Rs. 1,750,000 Issued stock dividend as approved by the board of directors. Declared and paid interim cash dividend of Rs. 3 per share outstanding. Rs. 700,000 Rs. 350,000 Rs.2,800,000 Rs. 2,250,000 Rs. 990,000 Rs. 670,000 Rs. 3,910,000 (Rs. 130,000) Rs.3,780,000 A Cash dividend of Rs. 5 per common share was declared on the record date of 1 August 2019. The declared cash dividend was paid Purchase treasury stock at Rs. 130,000 cost. Declared a stock dividend of 10% of outstanding shares. The market value of Stock was amounting to Rs. 70 per share. Required a) How many common stocks were outstanding on each cash and stock dividend payment/issuance date? b) What is the rupee's amount for each cash dividends? d) e) Compute the amount of capitalization of retained earnings for stock dividend during March, 2020. Workout the per share cost of Treasury stock purchased. How much net income was earned by the company during 2019-20? The equity sections of balance sheets of Good Luck Trading Company Ltd as at the close of two years follows:- Stockholders' equity as at 30 June, 2019 Common stock Rs. 50 par value 60,000 shares authorized and 35,000 shares issued and outstanding. Premium on Common Stock Retained Earnings Total Equity Stockholders' Equity as at 30 June, 2020 Common stock Rs. 50 par value 60,000 shares authorized and 45,000 shares issued and outstanding 2,000 common stocks on treasury. Premium on Common Stock Retained Earnings Less: Cost of treasury stock Total Equity During the year 2019-20 the following events took place: - 20 August 2019 15 September 2019 30 September 2019 15 March 2020 05 April 2020 20 June 2020 Rs. 1,750,000 Issued stock dividend as approved by the board of directors. Declared and paid interim cash dividend of Rs. 3 per share outstanding. Rs. 700,000 Rs. 350,000 Rs.2,800,000 Rs. 2,250,000 Rs. 990,000 Rs. 670,000 Rs. 3,910,000 (Rs. 130,000) Rs.3,780,000 A Cash dividend of Rs. 5 per common share was declared on the record date of 1 August 2019. The declared cash dividend was paid Purchase treasury stock at Rs. 130,000 cost. Declared a stock dividend of 10% of outstanding shares. The market value of Stock was amounting to Rs. 70 per share. Required a) How many common stocks were outstanding on each cash and stock dividend payment/issuance date? b) What is the rupee's amount for each cash dividends? d) e) Compute the amount of capitalization of retained earnings for stock dividend during March, 2020. Workout the per share cost of Treasury stock purchased. How much net income was earned by the company during 2019-20?

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aNumber of common stocks outstanding on each cash and stock dividend paymentissuance date As at 1 Au... View the full answer