Question

EXERCISES During 2018, Maldives Corporation reported the following selected transactions: Jan 1 Issued 20,000 common shares at $15 per share. 1. Jun 15 Sep 30 Oct 10 Issued 2,000 common shares at $14 per share in exchange for equipment valued at $27,000 The board of directors declared a 10% common stock dividend. The market of the common shares on this date was $12 per share. The 10% common stock dividend is distributed. The board of directors declared a cash dividend of $0.22 per share to shareholders of record on December 15, payable on December 20. price Nov 30 Instructions Prepare the journal entries to record the above transactions assuming Maldives Corporation follows IFRS. (12)

Answer 1

Journal entries:
Date	Accounts title and explanations				Debit $	Credit $
1-Jan	Cash account Dr.				300000
	Common Stock capital					20000
	Additioanl paid in capital-Common					280000
15-Jun	Equipment Dr.				27000
	Common Stock capital					2000
	Additioanl paid in capital-Common					25000
30-Sep	Stock dividend Dr.				26400
	Stock dividend distributable (2200*1)					2200
	Additional paid in capital-Common					24200
10-Oct	Stock dividend distributable Dr.				2200
	Common Stock capital					2200
30-Nov	Dividend Dr. (24200*0.22)				5324
	Dividend payable					5324
20-Dec	Dividend payable Dr.				5324
	Cash account					5324
Note: In the absence of information, Par value per share is taken as $ 1.00