(More than One Security Issued for A Single Price)

1- Toys Ltd issued 6,000 ordinary shares, $15 par value and 4,000 preference share, $7 par value for $650,000.

The market values of the ordinary shares and preference shares were $75 and $95, respectively.

Required:

Journal entry to record additional issued capital for each class of share.

(Accounting for Retired Shares)

2-

(A)

Price paid is less than issue price.

7,000 shares of $3 par value share that were issued for $25 per share are reacquired for $20

per share.

Required:

Journal entry to record repurchase and retirement of ordinary share.

(B)

Price paid is more than issue price.

7,000 shares of $3 par value share that were issued for $25 per share are reacquired for $35 per share.

Required:

Journal entry to record repurchase and retirement of ordinary share.

3-

(A)

August 31, Board of directors declares a $13,000 cash dividend.

Required:

Journal entry to record declaration of cash dividend.

(B)-

September 30, is the date of payment for dividend.

Required:

Journal entry to record payment of cash dividend.