Tamer Company authorize to issue at 1/1/2017 : 

Ordinary, $2 par value per share, 2,000,000 share Preference 6%; $60 par value per share, 10,000 shares. Cumulative and fully participate 

1- January 2017 issued for cash 500,000 ordinary for $3, and 5000 preferences for $100. 

2- July 1, 2017 issued 500,000 shares for building (fair market 600,000), land (fair market800,00) and equipment (fair market300,000). 

3- January 1,2018 issued 5000 preference shares for 120,000 cash. 

4- Agust1,2018 issued 1,000,000orinary shares for cash at $4. 

5- January 1/,2019 the company issued 500,000 ordinary shares for factory the asking price was 2,000,000 and the share market price was 3.5$. 

6- June 1/2019 the company purchase 50,000 from its outstanding shares for 5$ each. 

7- August 1/2019 the company sold 20,000 from repurchased shares for $6. 

8- September 1/2019 the company sold 20,000 from repurchased shares for $3.5 

9-The net income for the years 2017, (200,000$), 2018(450,000$), 2019(500,000$), no dividend paid or declared during 2017 and 2018. 

10-If the total amount of cash dividends declared for both classes of shares is $400,000 at 15, December 2019 

Required: 

1-Prepare all entries during 2019 including the needed entry for separating the dividend into the ordinary and Preference portions at 31December 2019. 

2- prepare share- holders equity section in 31/12/2019.

Answer rating: 100% (QA)

Answer 1 Journal enteries Date Particulars Debit Credit 1Jan17 Cash 2000000 Ordinary Share Capital 1000000 6 Preference Share Capital 300000 Share Pre... View the full answer