Question

IFRS11.3  

Overton Co. had the following transactions during the current period.

Mar.   2	Issued 5,000 shares of $1 par value ordinary shares to attorneys in payment of a bill for $30,000 for services performed in helping the company to incorporate.
June 12	Issued 60,000 shares of $1 par value ordinary shares for cash of $375,000.
July  11	Issued 1,000 shares of $100 par value preference shares for cash at $110 per share.
Nov. 28	Purchased 2,000 treasury shares for $80,000.

Answer 1

Journal Entry;

Date	Account Name	Debit	Credit
Mar 2	Attorney Expense	$30,000
	Ordinary Shares ( 5000×$1)		$5000
	Additional Paid In Capital - Ordinary Share		$25,000
June 12	Cash	$375,000
	Ordinary Shares(60,000×$1)		$60,000
	Additional Paid In Capital - Ordinary Share		$315,000
July 11	Cash(1000*$110)	$110,000
	Preference Share(1000*100)		$100,000
	Additional Paid In Capital - Preference Share		$10,000
Nov .28	Treasury Stock	$80,000
	Cash		$80,000