ABC Company reported the following amounts in the equity section of its December 31, 2021, statement...

 

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ABC Company reported the following amounts in the equity section of its December 31, 2021, statement of financial position. Share capital preference, 9%, $100 par (10,000 shares authorized, 3,000 shares issued) $300,000 Share capital-ordinary, $5 par (100,000 shares authorized, 20,000 shares issued) Share premium-preference 100,000 125,000 450,000 Retained earnings Total $975,000 During 2022, ABC took part in the following transactions concerning equity. 1. Purchased 2,200 shares of its own outstanding ordinary shares for $50 per share. ABC uses the cost method. Reissued 300 treasury shares for equipment with a fair value of $10,000. Declared a 10% share dividend on the outstanding ordinary shares when the shares are selling for $55 per share. 4. Issued the share dividend. 5. 2. 3. Declared the annual 2022 $9 per share dividend on preference shares. These dividends are payable in 2023 6. Declared $2 per share dividend on ordinary shares. These dividends are payable in 2023. 7. A 2-for-1 share split is declared and issued. 8. Issued 500 preference shares at $115 per share. Required: Prepare journal entries to record the transactions described above. (10 marks for each transaction) ABC Company reported the following amounts in the equity section of its December 31, 2021, statement of financial position. Share capital preference, 9%, $100 par (10,000 shares authorized, 3,000 shares issued) $300,000 Share capital-ordinary, $5 par (100,000 shares authorized, 20,000 shares issued) Share premium-preference 100,000 125,000 450,000 Retained earnings Total $975,000 During 2022, ABC took part in the following transactions concerning equity. 1. Purchased 2,200 shares of its own outstanding ordinary shares for $50 per share. ABC uses the cost method. Reissued 300 treasury shares for equipment with a fair value of $10,000. Declared a 10% share dividend on the outstanding ordinary shares when the shares are selling for $55 per share. 4. Issued the share dividend. 5. 2. 3. Declared the annual 2022 $9 per share dividend on preference shares. These dividends are payable in 2023 6. Declared $2 per share dividend on ordinary shares. These dividends are payable in 2023. 7. A 2-for-1 share split is declared and issued. 8. Issued 500 preference shares at $115 per share. Required: Prepare journal entries to record the transactions described above. (10 marks for each transaction)

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