[Carol]

Also question 5:
At JUNE 30 2005 the capital reserves of smith were:

Ordinary shares of $1 each. 100
Share premium 80
During the year. Ended June 30, 2006
1 September 2005. A bonus issue of one ordinary share for every two
held USING THE SHARE PREMIUM ACCOUNT.
1 January 2006. A fully subscribed rights issue of two ordinary shares
For every five held at that date at $1.50 per share.

What would be the balance on each account be at 30 June 2006?

My workings:

# shares. Share capital. Share premium

100. 100. 80
50. ? ?
60. 60. 30

Thanks

[Carol]

Sir:
Question #2
At 31 December 2004 a company’s capital structure was as follows:

Ordinary share capital. 125,000
500,000 shares of .25c each
Share premium account. 100,000

In the year ended 31 December 2005 the company made a rights issue of 1 share for every 2 held at $1 per share and this was taken up in full. Later in the year the company made. Bonus issue if 1 share for every 5 held, USING THE SHARE PREMIUM ACCOUNT FOR THE PURPOSE.

What was the capital structure at December 31, 2005?

My calculations:

# shares. Share capital. Share premium
500,000. 125,000. 100,000
250,000. X .25. 62,500. 187,500. (250,000 @.75)

Where do I go from here. And, given the answer, I must have done something wrong.

Thanks

[Carol]

Thanks for the explanation.

[Carol]

Tutor:

In statement of cash flows, example 1 – Blair Limited:

You did two workings prior to proceeding to do the cash flow statement. One of which is “tax”.
While I understand why you did workings for the non current asset, given the “relevant information”, I don’t understand why you did workings for tax when there were no additional information given. In other words, how would I know that I would have to address Tax before delving into the question?

[Carol]

Also question 5:
At JUNE 30 2005 the capital reserves of smith were:

Ordinary shares of $1 each. 100
Share premium 80
During the year. Ended June 30, 2006
1 September 2005. A bonus issue of one ordinary share for every two
held USING THE SHARE PREMIUM ACCOUNT.
1 January 2006. A fully subscribed rights issue of two ordinary shares
For every five held at that date at $1.50 per share.

What would be the balance on each account be at 30 June 2006?

My workings:

# shares. Share capital. Share premium

100. 100. 80
50. ? ?
60. 60. 30

Thanks

[Carol]

Thanks John.
The first sentence says it all.

[Carol]

Hello John:
Question 1 for chapter 9 test

Why couldn’t the answer be
Dr. Drawings 1920
Cr inventory 1920

Thanks

[Carol]

Thanks a lot Mr. Moffat!

[Carol]

Please help me with Chapter 18 Test question 3
The draft accounts of Anthea Co. For the year ended 31 December 20×9 include the following:

Revenue $80,000
Gross profit $20,000

It was subsequently discovered that the revenue had been understated by $10,000 and closing inventory overstated by $5,000. After correction of these errors the gross profit percentage would be……

(I know that the revenue would be $90,000)

Thanks

[Carol]

Thank you!

[Carol]

Help needed: chapter 16, test question 6
The Payables Ledger Control Account has a number of errors that needs to be corrected.
Why does the correction of “refunds received from suppliers” of $2,700 on the credit side of the payables control account? Doesn’t that mean the amount owing to the supplier is being increased – which is totally contrary to what the narrative says?

[Carol]

I need help with the following problem found on page 34. Question 5:
Details of a company’s insurance policy are shown below:
Premium for year ended 31 March 2008 paid April 2007. $25,920
Premium for year ending 31 March 2009 paid April 2008. $28,800 what figures should be included in the company’s financial statements for the year ended 30 JUNE 2008

I see how the prepayment is arrived at but the Profit & Loss is unclear given the different months of March, April and June.
Thanks

[Author]

Posts