Financial Accounting Exercise: Class 9 Question 1 Sonic Co. has 100,000 ordinary shares (no-par) issued...
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Financial Accounting Exercise: Class 9 Question 1 Sonic Co. has 100,000 ordinary shares (no-par) issued and outstanding when it started its business in Jan 2019. During 2019, the only share transaction was the acquisition of 800 treasury shares at 9 per share. The share premium account as at 1 Jan 2020 was $15,000. During 2020, the following transactions occurred: 1)Reacquired 500 shares at $10 per shares on 5 January 2020 ii)Sold 200 shares of treasury shares at S4 per share on 7 May 2020 iii)issued 2,500 shares of ordinary shares at $8 per share on 5 July 2020 iv) declared cash dividend $2,250 for ordinary shares on 31 December 2020 REQUIRED: (a) Prepare journal entries for the above transactions. (b) Calculate the share premium balance as at 31 December 2020. Question 2 ABC Co. has 2,000 shares, 10% preference shares of $50 par, and 8,000 shares ordinary shares outstanding at the beginning of the year. During the year, 1000 shares of treasury shares are purchased. The net profit for the year is $250,000 with dividend declared for preference shares only. Calculate earnings per share on ordinary share
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