The stockholders' equity section information of the balance sheet of ABC Company as on 30 June,...

 

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The stockholders' equity section information of the balance sheet of ABC Company as on 30 June, 2020 was as under:- Stockholders' Equity 50,000 common stock of Rs. 10 each par authorized and 40,000 common stock of Rs. 10 each par subscribed and issued at Rs. 20 each. Premium on Common Stock Retained Earnings Rs. 400,000 Rs. 400,000 Rs. 500,000 Rs. 1,300,000 Total equity The following transactions took place during July-August 2020:- a) On 15 July, 2020 the management decided to purchase 15,000 common stocks from the market at the prevailing price of Rs. 25 each. b) On 25 July, 2020 the Board of Directors decided which was approved in the annual general meeting to declare and pay cash dividend of Rs. 3 per common stock on the record date of 20 July, 2020. c) On 30 July, 2020 the management decided to sell remaining 4,000 common stock at Rs. 30 each. Required 1) 2) Record the above transactions in the books of accounts of the company. Present the Stockholders' Equity section of the balance sheet of the company as at 31 August, 2020. The stockholders' equity section information of the balance sheet of ABC Company as on 30 June, 2020 was as under:- Stockholders' Equity 50,000 common stock of Rs. 10 each par authorized and 40,000 common stock of Rs. 10 each par subscribed and issued at Rs. 20 each. Premium on Common Stock Retained Earnings Rs. 400,000 Rs. 400,000 Rs. 500,000 Rs. 1,300,000 Total equity The following transactions took place during July-August 2020:- a) On 15 July, 2020 the management decided to purchase 15,000 common stocks from the market at the prevailing price of Rs. 25 each. b) On 25 July, 2020 the Board of Directors decided which was approved in the annual general meeting to declare and pay cash dividend of Rs. 3 per common stock on the record date of 20 July, 2020. c) On 30 July, 2020 the management decided to sell remaining 4,000 common stock at Rs. 30 each. Required 1) 2) Record the above transactions in the books of accounts of the company. Present the Stockholders' Equity section of the balance sheet of the company as at 31 August, 2020.

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Answer 1 Record the above transactions in the books of accou... View the full answer