Assignment:
Q1. Khaled Co is in Export business operating from Jeddah for the last 10 years successfully. From the following summary of Cash Account of Khaled, prepare Cash Flow Statement for the year ended 31st March 2017 in accordance with using the direct method. The company does not have any cash equivalents.
Summary (Cash Account) 31-3-2017
|
Particulars
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Amount
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Particulars
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Amount
|
|
Bal 1.4.2016
|
50
|
Payments to Suppliers
|
2000
|
|
Equity Shares
|
300
|
Purchase of Fixed Asset
|
200
|
|
Receipt from Customers
|
2800
|
Overhead Expenses
|
200
|
|
Sale of Fixed Assets
|
100
|
Wages & Salaries
|
100
|
|
|
|
Taxation
|
250
|
|
|
|
Dividends
|
50
|
|
|
|
Repayment of long term Loans
|
300
|
|
|
|
Balance c/d
|
150
|
|
3250
|
|
3250
|
Q2. Explain the concept of Equity Share Capital and its Types?
Q3. A manufacturing corporation listed in capital market was trying to create demand on its share to keep share prices at desired level and to prevent share prices from going down, the corporate decided to purchase treasury stock from open market.( 3 marks)
So, you are required to explain what is meant by treasury stock and journalize the following transactions:
Q3. define Treasury stock and journalize the following transactions:
1- On May 8, Whitt, Inc. purchased 2,000 of its own shares of stock in the open market for $8,000
2- On June 30, Whitt sold 100 shares of its treasury stock for $4 per share.
3- On July 19, Whitt, Inc. sold an additional 500 shares of its treasury stock for $8 per share.
4- On August 27, Whitt sold an additional 400 shares of its treasury stock for $1.50 per share.