User Account

All Pages

Prepare journal entries to record transactions for skywalker

Assignment Help Accounting Basics
Reference no: EM132683147

Skywalker Ltd., started on January 1, 2020, was authorized to issue 1,000,000 ordinary shares.  During the fiscal year ending December 31, 2020, the following transactions were completed in the order given.

(1) January 1: 600,000 ordinary shares were issued for cash at $20.

(2) March 15: 25,000 ordinary shares were exchanged for 100,000 Yoda Corporation's shares. At that date, Skywalker's ordinary share were trading at $22 per share in the Hong Kong Stock Exchange, while Yoda Corporation was still an unlisted company. As investment banker placed the estimated value of the Yoda's share as $4 per share.

(3) October 20 : Yoda became a listed company and its share was trading at $5 per share. On the same day, Skywalker declared and paid a property dividend in which it distributed all its investment in Yoda's shares. (Assume that Skywalker has sufficient retained profits for dividend)

Required:

Problem 1: Prepare the journal entries to record all the transactions for Skywalker Ltd in 2020.

Reference no: EM132683147

Questions Cloud

Explain on the emerging technologies in auditing profession : Discuss on the emerging technologies in auditing profession and identify how it would benefit the profession. Elaborate on the role of auditors in auditing.
Suggest possible reasons for passing the dividends : The board of directors declares dividends only on the preferred stock. Suggest possible reasons for passing the dividends on the common stock
What should the iasb treat the situation : The economic consequences of a standard it is about to approve will disadvantage a powerful lobby group, what should the IASB treat the situation?
Prepare the statement of changes of shareholders equity : Preference share capital (2,000 shares). Prepare the Statement of Changes of Shareholders' Equity and Statement of Shareholders' Equity for year 2020.
Prepare journal entries to record transactions for skywalker : Prepare the journal entries to record all the transactions for Skywalker Ltd in 2020. Skywalker Ltd., started on January 1, 2020, was authorized to issue.
What is the amount of cash required for the payment : If Piedmont company pays the invoice within the discount period, what is the amount of cash required for the payment
How do prepare the journal entries for the year ending june : Prepare the journal entries for the year ending 30 June 2015. On 1 July 2014 Padma Ltd acquires 25 per cent of the issued capital of Jamuna Ltd.
What is the general purpose of applied research : What is the general purpose of applied research?
Determine the amount to be paid in full settlement : Determine the amount to be paid in full settlement of the invoice assuming that credit for returns and allowances was received prior to payment

Reviews

Write a Review

Accounting Basics Questions & Answers

  Make a schedule showing the current portion

Make a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Crane's balance sheet

  What other factors might we want to take into consideration

What other factors might we want to take into consideration when developing estimates for the current year?

  Supposed that the amount of saving that occurs at each

linear equations for the consumption and saving schedules take the general from c a by and s - a 1-by where cs and

  When deciding whether to make or buy the component what

iwasaki inc. is considering whether to continue to make a component or to buy it from an outside supplier. the company

  What is the equipment net book value

A company purchased a piece of equipment for $350,000 in 2008. What is the equipment's net book value on 12/31/2015

  Determine examples of asset-backed securities

Discussion of the third risk that exists for MBS investors in addition to the credit and interest rate risks faced by all bondholders

  Determine the accounts affected by the journal entries

Determine the accounts affected by the journal entries above and prepare the journal entries

  Aviss taxable income for the year is 300000 and bests

aviss taxable income for the year is 300000 and bests taxable income for the year is 425000. for each of the scenarios

  Record the appropriate journal entry to update sambas books

Record the appropriate journal entry to update Samba's books. Samba corporation operates in an industry with a high collectability issues.

  Prepare a detailed budget statement that shows

Prepare a detailed budget statement that shows the total contribution for each model

  Create a product-line profitability report for sfs

Create a product-line profitability report for SFS under the current costing system. (Loss amounts should be indicated by a minus sign.

  What is the netbook value of the cash registers

If this asset has an estimated useful life of four years, what is the netbook value of the cash registers on May 31

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd