Reference no: EM133149145

Question 1 - Prepare proper journal entries for these transactions for Batman Industries Inc.

The following activities regarding share subscriptions occurred during 2020 for Batman Industries Inc.

July 1- Sold 1,000 subscriptions for common shares at $20 per share.

Subscribers paid $5 per share on this date; $5 more per share is due on September 1. Subscribers who fail to make the second payment on September 1 get their deposit refunded.

The final payment of the balance of $10 per share is due on December 1. Subscribers who fail to make the final payment forfeit the $10 per share they have paid.

September 1 - 900 of the subscribed shares first payment were made. 100 were not made and qualified for the refund. Record the payments received and the refund made.

December 1 - 800 final payments were received, 100 more did not make the payment and forfeited their first two payments. Record the payments received, the common shares issued, and the payments forfeited.

Question 2 - Part A - On March 31, 2019- Spiderman Developments Inc. issued 20,000 packages of 1 preferred share and 1 common share for $120 each. The market value of the preferred shares was $17, and the market value of the common shares was $110. Prepare journal entries using the relative value method record the issuance of the shares.

Part B - On May 31, 2019- Flash Investments Inc. issued 30,000 packages of 1 preferred share and 1 common share for $70 each. The market value of the preferred shares was unknown, and the market value of the common shares was $65. Prepare journal entries using the residual value method record the issuance of the shares.

Question 3 - Part A - Gru-Mart Ltd. has 2,000,000 Common shares, issued and outstanding. They also have 200,000 $1 Preferred shares that are cumulative.

They have not paid dividends in 2018 and 2019, but are ready to pay dividends in 2020, in the total amount of $2,900,000.

Calculate and show how much each type of share (per share and in total) will receive, and record the dividend declaration and payment as two journal entries on December 15, 2020.

Part B - Robin-Mart Ltd. has 500,000 Common shares, issued and outstanding. They also have 100,000 $6 Preferred shares that are non-cumulative.

They have not paid dividends in 2018 and 2019, but are ready to pay dividends in 2020, in the amount of $2,300,000.

Calculate how much each type of share (per share and in total) will receive, and record the dividend declaration and payment as two journal entries on December 15, 2020.