BRIEF EXERCISE 15-1

Cash 4,500

Share Capital—Ordinary (300 X €10) 3,000

Share Premium—Ordinary 1,500

BRIEF EXERCISE 15-2

(a) Cash 8,200
Share Capital—Ordinary 8,200
(b) Cash 8,200
Share Capital—Ordinary (600 X €2) 1,200
Share Premium—Ordinary 7,000

BRIEF EXERCISE 15-3

WILCO CORPORATION

Equity

December 31, 2010

Share Capital—Ordinary, €5 par value € 510,000

Share Premium—Ordinary 1,320,000

Retained earnings 2,340,000

Less: Treasury shares (90,000)

Total equity €4,080,000

BRIEF EXERCISE 15-4

Cash 13,500

Share Capital—Preference (100 X $50) 5,000

Share Premium—Preference 3,100

Share Capital—Ordinary (300 X $10) 3,000

Share Premium—Ordinary 2,400

FV of ordinary (300 X $20) $ 6,000

FV of preference (100 X $90) 9,000

Total FV $15,000
Allocated to ordinary

$15,000/$6,000 X $13,500 = $ 5,400

Allocated to preference

$15,000/$9,000 X $13,500 = 8,100

BRIEF EXERCISE 15-5

Land.................................................................................. 31,000

Share Capital—Ordinary (3,000 X £5)...................... 15,000

Share Premium—Ordinary....................................... 16,000

BRIEF EXERCISE 15-6

Cash ($60,000 –$1,500).................................................... 58,500

Share Capital—Ordinary (2,000 X $10)..................... 20,000

Share Premium—Ordinary........................................ 38,500

BRIEF EXERCISE 15-7

7/1/10

Treasury Shares (100 X €87)............................ 8,700

Cash........................................................... 8,700

9/1/10

Cash (60 X€90)................................................. 5,400

Treasury Shares (60 X €87)....................... 5,220

Share Premium—Treasury....................... 180

11/1/10

Cash (40 X€83)................................................. 3,320

Share Premium—Treasury............................... 160

Treasury Shares (40 X €87)....................... 3,480