Reference no: EM132495343

On January 1, 2020, Fairly Company issued 30,000 ordinary shares with a €2 par value for €150,000. On March 1, 2020, the company purchased 4,000 ordinary shares for €8 per share for the treasury. On June 1, 2020, 1,000 of the treasury shares are sold for €10 per share. On September 1, 2020, 2,000 treasury shares are sold at €6 per share.

Instructions:

Question 1: Journalize the share transactions of Fairly Company in 2020. The equity section of Foley Corporation at December 31, 2019, included the following:

4% Share capital-preference, €100 par value, cumulative, 10,000 shares authorized, 8,000 shares issued and outstanding ........... € 800,000 Share capital-ordinary, €10 par value, 250,000 shares authorized, 200,000 shares issued and outstanding ............................. 2,000,000 Dividends were not declared on the preference shares in 2019 and are in arrears. On September 15, 2020, the board of directors of Foley Corporation declared dividends on the preference shares for 2019 and 2020, to shareholders of record on October 1, 2020, payable on October 15, 2020. On November 1, 2020, the board of directors declared a €.90 per share dividend on the ordinary shares, payable November 30, 2020, to shareholders of record on November 15, 2020.

Instructions:

Question 2: Prepare the journal entries that should be made by Foley Corporation on the dates indicated below:

September 15, 2020,

November 1, 2020,

October 1, 2020,

November 15, 2020,

October 15, 2020 and

November 30, 2020