Accounting Homework tutorial 3 PDF

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Accounting homework answers for tutorial 3 week 4....

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Accounting Homework tutorial 3: Lucas Gilbert – 13896257 4. a. Date 1 July 2 Aug

3 sept 4 oct 6 Nov

b. Date 1 July

2 Aug

3 sept

Description Cash trust Application Application Allotment Contributed equity cash Cash trust Cash allotment Call Contributed equity cash call

Description Cash trust Application Application Trust Application Allotment Contributed equity Application Allotment cash Cash trust Cash allotment

Debit 80,000

Credit 80,000

80,000 70,000 150,000 80,000 80,000 70,000 70,000 60,000 60,000 60,000 60,000

Debit 98,400

Credit 98,400

10,400 10,400 80,000 70,000 150,000 8,000 8,000 88,000 88,000 62,000 62,000

5. Date

Description Cash Call Contributed equity Forfeited share account call

Debit 58,800

Credit 58,800

4,200 3,000 1,200

9. a. Date 1 July 1 Aug

Cash Forfeited share account Contributed equity

3,800 400

Description Retained earnings Dividends payable Dividends payable Contributed equity

Debit 375,000

4,200

Credit 375,000

375,000 375,000

b. shareholder needs $15 worth of shares to get one share in dividend. The dividend is $1.50, so therefore an individual needs 10 shares to receive one share in dividend. 1,000 shares would get you 100 shares in dividend. 17. a. Date 1 Mar 1 Jul 1 Aug 15 Aug 15 sept 1 Oct 31 Dec

Description Cash Contributed Equity Retained earnings Dividend payable Dividend payable Contributed equity Retained earnings Ordinary share dividends payable Ordinary share dividends payable Cash Contributed equity Cash Revenues Expenses Retained earnings

Debit 1,600,000

Credit 1,600,000

450,000 450,000 450,000 450,000 357,500 357,500 357,500 357,500 45,000 45,000 1,620,000 1,100,000 520,000

A share dividend is a dividend payed to shareholders in the forms of shares whereas, a cash dividend is a dividend payed to shareholders in the form of cash. Many individuals think that it is better to receive a cash dividend as it gives a direct result from an individual’s investment. However, I disagree. A cash dividend gives you limited options unlike the share dividend in which you are given shares and you can choose whether you want to sell those excess shares or keep them in the company to hopefully increase on your investment.

Therefore, it can be seen that the share dividend option is more versatile than the cash dividend option....