Goodwill mini exercise 4 — OpenTuition Forums

Tt42010y ago

Hi Mike I have been working on questions for the consolidated accounts and when ever there has been shares @ 50c and you need to calculate the amount of shares purchased you take the amount of shares e.g. 600,000 and you x 2 to get 1200,000 shares But in the mini exercise questions you have got the share figure as 300,000, please can you explain why in chapter 9 you have x by 2 but in the mini questions you have divided by 2? Thanks your help

MikeLittleTutor10y ago#1

I'm struggling here! Can you give me page numbers from the course notes where I can find the questions that you are querying? I don't see 300,000 in any mini exercise nor x 2 in chapter9

Tt42010y ago#2

Hi Mike Page 200 question 3 Thanks

Tt42010y ago#3

Hi Mike Sorry should have said on the last reply that chapter 9 of the notes shows Danute has 50c shares The answer then shows that you take the shares and x 2 The mini exercise is on page 200 q3 Thanks

MikeLittleTutor10y ago#4

Because in Ausra we are given the $ value of the share capital so need to multiply by 2 to find the numbe of 50 cent shares In number 3 we are given the number of shares so need to divide by 2 to get the $ value Ok?

Tt42010y ago#5

Hi Mike Ok yes that makes scene to me now, we are usual given the $ amount so we are to work out the number of shares, but in q3 we have been given the number of shares Thanks so much for your help

MikeLittleTutor10y ago#6

You're welcome - and be prepared to be given that information in either way next week!