1) On 8th of june, the directors of ABC ltd voter to transfer $35,000 to the plant and maintenance reserve from retained earnings. Prepare general entries.
2) On 15th April 2013, the directors of XYZ ltd voted to buy back the companies 22,000, 6% preference shares at $2.80 each. These shares has been initially issued at $2.40. It is the company policy to account for buy back firstly against share capital and then equally against retained earnings and ARR. Prepare the general entries.
3) On 17th November 2013, the directors of ABC ltd forfeited 25,000 shares for non payment of a call. The issue price of the share $3.50 each, payable $2.60 on application and 90 cents call. The company’s constitution state that forfeited share are not to be reissued and no refund is to be made to former shareholder.
4) On 27th june 2013, the Director of esperance ltd declared a 6 cents per share ordinary share dividend. At that date, 85,000 ordinary shares were on issue and fully paid. Shareholder approval is required to pay dividends and is normally obtained at AGM which is scheduled to be on 28th September 2013. Cheques are email to shareholders 1 month from the day of approval. Discuss how and when the dividend would be recorded.