E15-18

No
Account
1 Dividen Payable - preference
Dividen Payable - Ordinary
Cash
(2,000x$8)
(20,000x$2)
2 Treasury Share
Cash
(2,700 x $ 4)
3 Land

Dr
16,000
40,000

Cr

56,000

108,000
108,000

30,000
Treasury Share
share premium - Treasury

28,000
2,000

4 Cash (500x$105)
Share Capital - preference
Share premium - Preference
(500x$100)

52,500

5 Retained Ernings
Ordinary Share Dividend Distributable
Share Premium - Ordinary
(20,000 - 2,700/700 = 18,000)
(18,000 x 10% = 1800)
1,800 x $45 = 81,000
1,800 x $5 = 9000

81,000

6 Ordinary Share Dividend Distributable

Share Capital - Ordinary
7 Retained Earnings
Dividen Payable - preference
Dividen Payable - Ordinary
(2500 x $8 = 20,000)
((18,000 + 1,800) x $2 = 39,600)

50,000
2,500

9,000
72,000

9,000
9,000
59,600
20,000
39,600