Exercise Acquisition of Treasury Shares and Conversion of Preference Shares into Ordinary Shares
Jazul Company had the following equity balances reported in its December statement of financial position
Preference Share Capital, convertible, P par, P
Ordinary Share Capital, P stated value, P
Preference Share Premium, P
Paidin capital in Excess of Stated Value, P
Retained Earnings, P
During the following transactions relating to share capital have taken place:
a ordinary shares were reacquired at P Subsequently, shares were reissued at P per share and the shares were reissued at P per share.
b preference shares were converted into ordinary shares. Ten ordinary shares were issued for every preference share converted.
Instructions:
Prepare journal entries to record the preceding transactions.
State the number of preference shares and ordinary shares issued and outstanding.
