Reference no: EM132572941

Frank Ltd. is a public corporation, and has a December 31 fiscal year-end. There are currently 400,000 issued and outstanding no par value common shares of Frank Ltd. reflected in the share capital account, at a total value of $8,000,000.

• On January 10, 2018 a further 200,000 common shares were offered on a subscription basis at $23 per share. These shares were fully subscribed, and subsequently issued on receipt of the total proceeds on March 31, 2018.
• On May 15, 2018 Frank Ltd. purchased for retirement 100,000 common shares at $22 per share.
• On June 30, 2018, all common shareholders were issued one stock option for each common share presently held as part of a financial reorganization. Frank Ltd. received consideration of $290,000 for the 500,000 options issued. Each option entitled the holder to subsequently acquire one common share of Frank Ltd. for $25.
• On August 15, 2018 Frank Ltd. shares were trading on the stock exchange at $28 and 70% of the outstanding options were exercised. At October 15, 2018 Frank Ltd. shares were trading at $22 and the remaining options lapsed.
• On November 1, 2018 Frank Ltd. decided to double the number of common shares currently outstanding, and issued a two - for - one stock split.
• On December 30, 2018 Frank Ltd. declared a dividend sufficient to pay $2 per share to all common shareholders.

REQUIRED:

Question 1: Prepare Frank Ltd.'s 2018 entries to record the above transactions.