QUESTION 6 (16 marks) Tiger Limited was incorporated on January 1, 2017. The authorized share capital...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
QUESTION 6 (16 marks) Tiger Limited was incorporated on January 1, 2017. The authorized share capital of the corporation was 100,000 shares of $10 par value ordinary shares and 20,000 shares of $50 par value 10% cumulative preference share. Below were the share transactions that took place in Year 2017: a. Required: (Show all calculations and round ALL answers to 2 decimal places.) b. Jan 14 Jan 25 C. Issued 12,000 ordinary shares for $11 per share. Issued 5,000 preference shares for $52 per share. Prepare journal entries to record the above share transactions for Tiger Limited. (Explanation for the journal entry is NOT required.) (6 marks) There was a net loss for Tiger Limited for 2017 and no dividends were declared or paid for 2017. In addition, 1,000 shares of ordinary shares were purchased by the company on April 1, 2018. On December 31, 2018, the company reported a year-end retained earnings of $105,000. The board of directors decided to declare a $1.3 dividend per share to the ordinary shareholders. Calculate the total amount of dividends payable to EACH class of shareholders on December 31, 2018. (6 marks) On December 31, 2018, the board of directors also announced a 4-for-1 share split on the ordinary shares of the company. State the adjusted figures of the following items for ordinary shares of the company after the 4-for-1 share split on December 31, 2018: i. ii. Number of shares outstanding Par value of each share End of Section B ~End of Paper~ (4 marks) QUESTION 6 (16 marks) Tiger Limited was incorporated on January 1, 2017. The authorized share capital of the corporation was 100,000 shares of $10 par value ordinary shares and 20,000 shares of $50 par value 10% cumulative preference share. Below were the share transactions that took place in Year 2017: a. Required: (Show all calculations and round ALL answers to 2 decimal places.) b. Jan 14 Jan 25 C. Issued 12,000 ordinary shares for $11 per share. Issued 5,000 preference shares for $52 per share. Prepare journal entries to record the above share transactions for Tiger Limited. (Explanation for the journal entry is NOT required.) (6 marks) There was a net loss for Tiger Limited for 2017 and no dividends were declared or paid for 2017. In addition, 1,000 shares of ordinary shares were purchased by the company on April 1, 2018. On December 31, 2018, the company reported a year-end retained earnings of $105,000. The board of directors decided to declare a $1.3 dividend per share to the ordinary shareholders. Calculate the total amount of dividends payable to EACH class of shareholders on December 31, 2018. (6 marks) On December 31, 2018, the board of directors also announced a 4-for-1 share split on the ordinary shares of the company. State the adjusted figures of the following items for ordinary shares of the company after the 4-for-1 share split on December 31, 2018: i. ii. Number of shares outstanding Par value of each share End of Section B ~End of Paper~ (4 marks)
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
Students also viewed these accounting questions
-
Prepare journal entries to record the above transactions for Emerson Corporation July 15 Declared a cash dividend payable to common stockholders of $161,000. Aug. 15 Date of record is August 15 for...
-
Prepare journal entries to record these transactions: (a) Benton Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No...
-
Prepare journal entries to record these transactions: (a) Blaska Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No...
-
In the Akerlof example, the individuals are treated as indifferent to risk. What would you expect to see in these markets if individuals wanted to avoid risk? What if there were some risk lovers?
-
Cave Company produces a product called Lem. The standard direct material cost to produce one unit of Lem is 4 quarts of raw material at $2.50 per quart. During May 2010, 4,200 quarts of raw material...
-
Parsons Company acquired 90% of the outstanding common stock of Shea Company on June 30, 2011, for $426,000. On that date, Shea Company had retained earnings in the amount of $60,000, and the fair...
-
4. ETHICS ETS Payphones, Inc., sold pay phones to the public. The company then leased back the pay phones from the purchaser, promising a fixed 14 percent annual return on their investment. Although...
-
Hearne Company has a number of potential capital investments. Because these projects vary in nature, initial investment, and time horizon, management is finding it difficult to compare them. Project...
-
"Dec.31. Records expected credit losses for the year by aningesting injury. Accounts written off during this first year havecreated a debit balance in the Allowance for doubtful accounts of$24,500....
-
This problem asks you to analyze the capital structure of HCA, Inc., the largest private operator of health care facilities in the world. In 2006, a syndicate of private equity firms acquired the...
-
Consider and comment on one of the following: Select and explain a scheduling algorithm that works better in a system with a single processor than with a system with multiple processors. Explain why...
-
XYZ firm reported net income of $4.45bn and revenues of $89.0bn over the most recent twelve-month period. The current market capitalization for XYZ firm is $827.3bn. What is XYZ firm's P/S ratio
-
The Sindh Engineering Company produces a bicycle which sells at Rs.1,000 per unit. At 80% capacity utilization which is the normal level of activity, the sales are Rs.180 million. Costs are as under:...
-
If the expected market rate of return is 0.09 and the risk-free rate is 0.05. And given the following two stocks Katy and Victoria: Stock Expected Rate of Return Beta Houston 0.12 0.8 Sugar Land 0.14...
-
Consider a photon with wavelength 2.00 pm which scatters from a particle at rest with unknown mass. A detector measures the wavelength of the scattered photon to be 3.00 pm when the scattering angle...
-
Problem based learning assignment 6 Ch. 12, case study, pg. 300 You are the manager of the clinical lab in the hospital. The hospital administration wants to penetrate the market and expand the...
-
< Entries for cash dividends The declaration, record, and payment dates in connection with a cash dividend of $1,525,000 on a corporation's common stock are July 9, August 31, and October 1....
-
A 2500-lbm car moving at 15 mi/h is accelerated at a constant rate of 15 ft/s 2 up to a speed of 50 mi/h. Calculate force and total time required?
-
Briefly discuss the two methods of recording accounts receivable when cash discounts are involved.
-
Which of the following are included in R&D costs of the current period? Justify each answer. 1. Current-period depreciation on the building housing the R&D activities 2. Cost of a market research...
-
What is a primary objective of financial reporting?
-
What is meant by the hockey stick pattern?
-
Flow chart the normal flow of cash in a casino.
-
While auditing a company you notice an employee in payroll who is living beyond his means (e.g., clothes, automobiles, housing). His wife does not work. Suggest six audit steps to help satisfy you...
Study smarter with the SolutionInn App