Asif Trading Ltd was established during 2017 with an authorized capital of 200,000 common stock of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Asif Trading Ltd was established during 2017 with an authorized capital of 200,000 common stock of Rs. 50 each. The Company issued 150,000 Common Stock to the public at Rs. 60 each during August, 2017 and continued business. During past two years the performance of the company registered sufficient profitability and after payment of dividends to the shareholders had the balance of Rs. 750,000 in the Retained Earnings Account as on 30 June, 2020 apart from the Premium account. The company purchased it own 20,000 common stocks during August 2020 from the market at Rs. 52 each. These shares were sold at Rs. 48 each and Rs. 55 each in the proportion of 50% at each occasion during January, 2021. Required a) Record the purchase of own Common Stock by the company during August 2020 and present the equity section of the balance sheet as at 31 August, 2020. b) Record the sale of Common Stocks during January, 2021 which were purchased during August 2020 and also present the equity section of the balance sheet as at 31 January, 2021. Asif Trading Ltd was established during 2017 with an authorized capital of 200,000 common stock of Rs. 50 each. The Company issued 150,000 Common Stock to the public at Rs. 60 each during August, 2017 and continued business. During past two years the performance of the company registered sufficient profitability and after payment of dividends to the shareholders had the balance of Rs. 750,000 in the Retained Earnings Account as on 30 June, 2020 apart from the Premium account. The company purchased it own 20,000 common stocks during August 2020 from the market at Rs. 52 each. These shares were sold at Rs. 48 each and Rs. 55 each in the proportion of 50% at each occasion during January, 2021. Required a) Record the purchase of own Common Stock by the company during August 2020 and present the equity section of the balance sheet as at 31 August, 2020. b) Record the sale of Common Stocks during January, 2021 which were purchased during August 2020 and also present the equity section of the balance sheet as at 31 January, 2021.
Expert Answer:
Answer rating: 100% (QA)
A August 2020 Company purchases 20 000 common stocks at Rs 52 each Ret ai... View the full answer
Related Book For
Construction accounting and financial management
ISBN: 978-0135017111
2nd Edition
Authors: Steven j. Peterson
Posted Date:
Students also viewed these economics questions
-
Suppose that inflation is 2%, the Federal funds rate is 4%, and inflation rises 3%. According to the Taylor Rule, what should the Federal Funds target rate be? Group of answer choices 5.5% 5% 4% 3.5%
-
Determine the effective annual interest rate on a $75,000 short-term loan, with a term of one year and a nominal interest rate of 12%. The bank discounts the interest.
-
Determine the effective annual interest rate on a $100,000 short-term loan, with a term of 245 days and a nominal interest rate of 8%. The bank discounts the interest.
-
According to data released by the World Bank, the mean PM10 (particulate matter) concentration for the city of Kabul, Afghanistan, in 1999 was 46. Suppose that because of efforts to improve air...
-
Sweet Shop Co. is a chain of candy stores that has been in operation for the past ten years. Prepare journal entries for the following events, which occurred at the end of the most recent year. If...
-
Liabilities The following items occurred in Sarah Ltd for the year ended 30 June 2026. (a) Some of Sarah Ltds plant and equipment is situated in an area which, on average, is flooded every 15 years....
-
A statistics student has constructed a confidence interval for the mean height of daughters whose mothers are 66 inches tall, and a prediction interval for the height of a particular daughter whose...
-
You need to calculate the Average Days on Lot based on MSRP and/or Types using the Inventory data. n. Enter functions into the Average Days on Lot chart area that calculate the following: Insert a...
-
1) Identify and select a company. For our company we have decided to choose TJX. This is a large retail company located in Canada as well as in the USA. Here in Canada they have 3 main stores,...
-
Sketch vo for each network of Fig. 2.177 for the input shown. Would it be a good approximation to consider the diode to be ideal for both configurations? Why? 120 V Si Si E - 20V
-
You wish to test the following claim (Ha) at a significance level of a = 0.05. Ho:p = 0.13 Ha:p 0.13 You obtain a sample of size n = 649 in which there are 72 successful observations. For this test,...
-
The customer has just attended the weekly staff meeting for the infrastructure project and has stated that the market is changing for the product being created. As a result of this, the customer has...
-
Of the following, which is the most comprehensive definition of a project? a. An environment created to deliver a product, service, or result. b. A collaborative enterprise that delivers a product,...
-
A new call center is being built to support a new product at a national telephone company. The company doesnt have any data on how long it will take to sign up customers via the call center. This...
-
There is $150,000 allocated for management reserves. One of the stakeholders is a newly hired vice president who comes from a small company where project management was not formalized, so he is...
-
Three team members have different solutions to a critical path related problem. What is the best method the project manager can use to resolve the conflict? a. Problem solving b. Reward c. Withdrawal...
-
hi can u paraphrase this and make it to 2600 words pls: not my work this is the essay I wrote these are the links I do need footnote as well. Journal articles: Ravnyshyn v Drys, [2005] BCJ No 831,...
-
The cash records of Holly Company show the following four situations. 1. The June 30 bank reconciliation indicated that deposits in transit total $720. During July, the general ledger account Cash...
-
Modify the spreadsheet in Sidebar 16-2 to calculate the total interest paid over the life of the loan. Test your spreadsheet by entering the data from Example 16-9 and Problems 11 and 12. Compare...
-
Determine the average age of accounts payable and payable turns for the construction company in Figures 6-1 and 6-2. Use only the material and subcontract construction costs to calculate the average...
-
Determine the monthly payment for a thirty-year real estate loan with an annual percentage rate of 8.5% and an initial principal of $200,000. How much interest is paid over the life of the loan?
-
You are given the following information about two companies, partly extracted from their most recent statement of financial position and income statement, and partly taken from the financial press....
-
You are given the following information about Swin Gin plc: You are required to calculate the P/E ratio for each year, and comment on how the market appears to have reacted to changes in EPS. Year 1...
-
Assess the usefulness of P/E ratios and suggest how they might be misleading.
Study smarter with the SolutionInn App