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please prepare the journal entries Q1. Sold 22,500 Treasury shares at $2 each. Q2. Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,900,000 as at 1 March. The purchase consideration included a $2,700,000 note receivable due from Charlie Limited and the related interest receivable balance of $144,000, $140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $120,000. ( for depreciation details, refer to Q1 of additional information.) Q3. A 10% share dividend was declared when the market value per share was $2.1. Q4. Paid cash to acquired 30,000 shares of its own at $2.3 each. ITI intends to keep the shares for several months for management bonus.

please prepare the journal entries Q1. Sold 22,500 Treasury shares at $2 each. Q2. Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,900,000 as at 1 March. The purchase consideration included a $2,700,000 note receivable due from Charlie Limited and the related interest receivable balance of $144,000, $140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $120,000. ( for depreciation details, refer to Q1 of additional information.) Q3. A 10% share dividend was declared when the market value per share was $2.1. Q4. Paid cash to acquired 30,000 shares of its own at $2.3 each. ITI intends to keep the shares for several months for management bonus.

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....
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please prepare the journal entries

Q1. Sold 22,500 Treasury shares at $2 each.

Q2. Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,900,000 as at 1 March. The purchase consideration included a $2,700,000 note receivable due from Charlie Limited and the related interest receivable balance of $144,000, $140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $120,000. ( for depreciation details, refer to Q1 of additional information.)

Q3. A 10% share dividend was declared when the market value per share was $2.1.

Q4. Paid cash to acquired 30,000 shares of its own at $2.3 each. ITI intends to keep the shares for several months for management bonus.

Intelligent Toys, Inc (“ITP") is a well establish toys trading company which adopts the periodic system. ITI prepares its financial statements on a monthly basis. The trial balance of ITI as at 28 February 2021 is presented as follows: Intelligent Toys, Inc Trial Balance As at 28 February 2021 Account Title Debit Credit ($) ($) Accounts Payable 420,000 Accounts Receivable 675,000 745,200 Accumulated Depreciation - Building Accumulated Depreciation - Equipment Accumulated Depreciation - Motor Vehicle 570,000 664,668 Allowance for Doubtful Accounts 20,250 Building 9,720,000 Cash 1,001,520 Dividends Payable 120,000 Equipment 990,000 Interest Receivable 144,000 750,000 Long-term Investment Merchandise Inventory Motor Vehicle 975,000 832,500 2,700,000 18,000 Notes Receivable Prepaid Insurance Retained Earnings Salaries Payable Share Capital – Ordinary $1 par value, 10,000,000 shares authorized, 6,000,000 shares issued 2,077,212 105,300 and 5,977,500 shares outstanding Share Capital – Preference 5%, $100 par value, noncumulative, 6,000,000 100,000 shares authorized, 6,000,000 60,000 shares issued and outstanding Share Premium – Ordinary 840,000 Share Premium – Preference 300,000 Share Premium- Treasury Supplies 9,000 9,360 Treasury Shares (22,500 shares) 56,250 17,871,630 17,871,630
Transcribed Image Text:Intelligent Toys, Inc (“ITP") is a well establish toys trading company which adopts the periodic system. ITI prepares its financial statements on a monthly basis. The trial balance of ITI as at 28 February 2021 is presented as follows: Intelligent Toys, Inc Trial Balance As at 28 February 2021 Account Title Debit Credit ($) ($) Accounts Payable 420,000 Accounts Receivable 675,000 745,200 Accumulated Depreciation - Building Accumulated Depreciation - Equipment Accumulated Depreciation - Motor Vehicle 570,000 664,668 Allowance for Doubtful Accounts 20,250 Building 9,720,000 Cash 1,001,520 Dividends Payable 120,000 Equipment 990,000 Interest Receivable 144,000 750,000 Long-term Investment Merchandise Inventory Motor Vehicle 975,000 832,500 2,700,000 18,000 Notes Receivable Prepaid Insurance Retained Earnings Salaries Payable Share Capital – Ordinary $1 par value, 10,000,000 shares authorized, 6,000,000 shares issued 2,077,212 105,300 and 5,977,500 shares outstanding Share Capital – Preference 5%, $100 par value, noncumulative, 6,000,000 100,000 shares authorized, 6,000,000 60,000 shares issued and outstanding Share Premium – Ordinary 840,000 Share Premium – Preference 300,000 Share Premium- Treasury Supplies 9,000 9,360 Treasury Shares (22,500 shares) 56,250 17,871,630 17,871,630
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