Instructions : Prepare the equity section of the statement of financial position for Hatch plc...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Instructions : Prepare the equity section of the statement of financial position for Hatch plc at December 31, 2019. Show all supporting computations
P15:3 (L01,2,3) (Equity Transactions and Statement Preparation) Hatch plc has two classes of sare capital outstanding: 8%, 20 par preference and 5 par ordinary. At December 31, 2018, the fol- lowing accounts were included in equity. Share Capital - Preference, 150,000 shares 3,000,000 Share Capital - Ordinary, 2,000,000 shares 10,000,000 Share Premium-Preference 200,000 Share Premium-Ordinary 27,000,000 Retained Earnings 4,500,000 The following transactions affected equity during 2019. EO) 21 Jan. 1 30,000 preference shares issued at 22 per share. Feb. 150,000 ordinary shares issued at 20 per share. June 12-for-1 share split (par value reduced to 2.50). July 1 30,000 ordinary treasury shares purchased at 10 per share. Hatch uses the cost method. Sept. 15 10,000 treasury shares reissued at 11 per share ...) Dec. 31 The preference dividend is declared, and an ordinary dividend of 50 pence per share is declared. Dec. 31 Net income is 2,100,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
