Alamgir Company Ltd has presented the following components of the stockholders' equity of the balance sheet...

  

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Alamgir Company Ltd has presented the following components of the stockholders' equity of the balance sheet as at 30 June 2018:- Stockholders' Equity Common stock Rs. 50 par value 100,000 shares authorized 60,000 shares issued and outstanding. Premium on Common Stock Retained Earnings Total Equity Rs. 3,000,000 Rs. 1,800,000 Rs. 940,000 Rs.5,740,000 During 2018-19 the following transactions were conducted which were related to the stockholders' equity. 20 July 2018 25 July 2018 20 September 15 November 31 December 28 February 24 May 30 June Required a) b) c) Purchased 5,000 shares of its own Stock from the market at Rs. 60 per share. Directors declared Rs. 5 per share on record date of 24 July 2018 as cash dividend payable within 60 days. Paid the dividend as declared during July 2018. Sold the treasury Stock at Rs. 70 per share Directors declared an interim cash dividend of Rs. 2 per share to be paid within 60 days. Paid the interim dividend in cash. The directors approved re appropriation of Rs. 500,000 towards revenue reserve The income Statement showed a pretax profit of Rs. 800,000 for the year 2018-19. The tax rate is 30% Record the above transactions in the books of accounts of the company. Prepare a statement of retained earnings for the year ended 30 June, 2019. Draw the stockholders equity section of the balance sheet as at 30 June, 2019 of the company. Alamgir Company Ltd has presented the following components of the stockholders' equity of the balance sheet as at 30 June 2018:- Stockholders' Equity Common stock Rs. 50 par value 100,000 shares authorized 60,000 shares issued and outstanding. Premium on Common Stock Retained Earnings Total Equity Rs. 3,000,000 Rs. 1,800,000 Rs. 940,000 Rs.5,740,000 During 2018-19 the following transactions were conducted which were related to the stockholders' equity. 20 July 2018 25 July 2018 20 September 15 November 31 December 28 February 24 May 30 June Required a) b) c) Purchased 5,000 shares of its own Stock from the market at Rs. 60 per share. Directors declared Rs. 5 per share on record date of 24 July 2018 as cash dividend payable within 60 days. Paid the dividend as declared during July 2018. Sold the treasury Stock at Rs. 70 per share Directors declared an interim cash dividend of Rs. 2 per share to be paid within 60 days. Paid the interim dividend in cash. The directors approved re appropriation of Rs. 500,000 towards revenue reserve The income Statement showed a pretax profit of Rs. 800,000 for the year 2018-19. The tax rate is 30% Record the above transactions in the books of accounts of the company. Prepare a statement of retained earnings for the year ended 30 June, 2019. Draw the stockholders equity section of the balance sheet as at 30 June, 2019 of the company.

Answer rating: 100% (QA)

a July 20 Purchased 5000 shares of its own Stock from the market at Rs 60 per share July 25 Director... View the full answer