What is the correct journal entry to record the buyback

Assignment Help Financial Accounting
Reference no: EM132506596

Question 1: Gormenghast Ltd has decided to buy back 10% of their ordinary shares for $5 each. At the date of the buyback, their equity consists of the following: Ordinary share capital (1 000 000 shares, fully paid) $ 5 000 000. General reserve 400 000. Retained earnings 300 000. The buyback will also incur costs of $50 000. The entire buyback is to be funded by taking equal amounts from the general reserve and the retained earnings accounts. What is the correct journal entry to record the buyback?

Reference no: EM132506596

Questions Cloud

How much money do have in account today : What is the effective annual interest rate (EAR) you would get for your investment in the first 10 years? How much money do you have in your account today
Prepare journal entries to record the acquisition : Prepare journal entries to record the acquisition by Swan River Ltd, assuming that The cost of acquisition was $200,000 and $144,000 cash.
COMP445 Introduction to Robotics Assignment : COMP445 Introduction to Robotics Assignment Help and Solution, European University of Lefke - Assessment Writing Service - Design your algorithm to controlLeft
Calculate the debt yield ratio assuming the interest rate : $3,250,000 and you are planning on making a 20% down payment, calculate the debt yield ratio assuming the interest rate is 6%.
What is the correct journal entry to record the buyback : funded by taking equal amounts from the general reserve and the retained earnings accounts. What is the correct journal entry to record the buyback?
Stabilize the indicator effect on the economy : US strong currency leads to strong economy. Then, what, if any, policy action could be taken to either sustain or stabilize the indicator's effect on the econom
Determine amount to be shown within non-current liabilities : The annual payment was RM10,975 in arrears. Determine the amount to be shown within non-current liabilities at 31 October 20x3.
BMO6630 Business Research Methods Assignment : BMO6630 Business Research Methods Assignment Help and Solution - Victoria University - Assessment Writing Service - Article Collection & Structured Abstract
Discuss few best-selling and award winning author techniques : Discuss a few best-selling and award winning author techniques that align with your own approaches to writing from the Sampson et al. (2016) article.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the companys debt ratio

A company has total assets of $6,560,482.00, common stock of $2,448,887.00, retained earnings of $1,269,256. What is the company's debt ratio?

  Compute the company return on assets ratio and profit margin

Compute the company's return on assets ratio, profit margin ratio, and asset turnover ratio, both with and without the new product line.

  Elaborate how sandipa can explain the concepts to junior

Elaborate how Sandipa can explain the concepts to her junior with the help of suitable example. Ms. Sandipa is the accounts executive

  What is the depreciation charge for the year

What is the depreciation charge for the year? The table shows information relating to a company's fixed assets. Depreciation is 25% per annum on the reducing

  Prepare closing entries for wildhorse co on december

Prepare closing entries for Wildhorse Co. on December 31, 2020, selected account balances for Wildhorse Co. as of December 31, 2020.

  Who cares about the income statement

The balance sheet tells me about the cash the company's got; the cash flow statement tells me about its changes in cash. Who cares about the income statement?

  Bond premium or discount is being amortized

On January 1 of Year 1, Congo Express Airways issued $3,500,000 of 7% bonds that. pay interest semiannually on January 1 and July 1. The bond issue price is $3,197,389 and the market rate of interest for similar bonds is 8%.  The bond premium or disc..

  Compute palms taxable income

Palm received $25,000 of prepaid rent not included in book income. Based only on these items, compute Palm's taxable income.

  Use of the balance off rule to complete the ledger

Produce a trial balance applying the use of the balance off rule to complete the ledger.

  Prepare a classified balance sheet

Prepare a classified balance sheet. Clear Water Co. reports the following balance sheet accounts as of December 31.Accounts receivable

  Equity method to account for investment in seri

Separate incomes for Poe and Seri for 2013 are $35,000 and $120,000, respectively. Poe uses the equity method to account for investment in Seri.

  Predict eps of all scenarios including last years eps

Prepare one slide in PowerPoint to comment on results with some visuals. Predict EPS of all scenarios including last year's EPS using Excel functions and chart.

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!

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