Financial Accounting Assignment: PACC6004, Semester 2, Journal Entries

This financial accounting assignment presents a series of journal entries for Newcastle Ltd., detailing various equity transactions from July 2017 to June 2018. The entries cover a range of activities, including the issuance of bonus shares, dividend declarations and payments for preference and ordinary shares, share option grants and exercises, share repurchases, and the redemption of preference shares. The assignment also includes entries related to share forfeitures and reissuance, the transfer of profits to reserves, and asset revaluation. The provided entries showcase a comprehensive overview of financial accounting principles, specifically focusing on the equity section of the balance sheet and related transactions that impact retained earnings and other equity accounts. The assignment includes a bibliography with relevant accounting resources.

Running head: FINANCIAL ACCOUNTING ASSIGNMENT
Financial Accounting Assignment
Name of the Student:
Name of the University:
Author’s Note:

1FINANCIAL ACCOUNTING ASSIGNMENT
Table of Contents
Journal Entries:................................................................................................................................2
Bibliography:...................................................................................................................................6

2FINANCIAL ACCOUNTING ASSIGNMENT
Journal Entries:
In the books of NewCastle Ltd.
Journal Entries
Dr. Cr.
Date Particulars Amount Amount
04-07-
2017 General Reserve
1,20,00
0
"B" Ordinary Share Capital
1,14,00
0
Share Premium 6,000
(1-for-6 bonus shares issued to "B" Ordinary
shareholders @$4.00 each from general reserve)
12-09-
2017 Preference Share Dividend Payable 21,600
"A" Ordinary Share Dividend Payable 30,000
"B" Ordinary Share Dividend Payable 36,000
Cash at Bank 87,600
(Dividends on preference shares,"A" Ordinary shares &
"B" Ordinary shares, declared on 31 July,2017, paid duly)
30-09-
2017 Share Option 42,000
"B" Ordinary Share Capital 42,000
(60,000 share options issued at $0.70 each, subscribed 1
"B" Ordinary shares each)
07-10-
2017 Cash at Bank
2,10,00
0
"B" Ordinary Share Capital
1,86,00
0
Additional Paid-in-capital-Ordinary Shares 24,000
(Money received for 60,000 stock option exercised at
$3.50 per share)
Share Option 28,000
Additional Paid-in-capital-Ordinary Shares 28,000
(Balance 40,000 unexercised share options lapsed)
02-01- Share Final Call 1,80,00

3FINANCIAL ACCOUNTING ASSIGNMENT
2018 0
"A" Ordinary Share Capital
1,80,00
0
(Final call @$0.90 per share due for 2000,000 "A"
Ordinary shares)
16-01-
2018 Cash at Bank
1,19,70
0
Calls-in-Advance 45,000
Calls-in-Arrear 15,300
Share Final Call
1,80,00
0
(Due call money received, after adjusting call in advance,
except 17,000 share)
20-01-
2018 "A" Ordinary Share Capital 49,300
Calls-in-Arrear 15,300
Share Forfeiture 34,000
(17,000 share, for which call money was unpaid, duly
forfeited)
31-01-
2018 Cash at Bank 42,500
Share Forfeiture 6,800
"A" Ordinary Share Capital 49,300
(17,000 forfeited shares reissued at $2.50 per share)
Cost of Forfeiture & Reissue 300
Cash at Bank 300
(Cost of forfeiture and reissue of shares duly paid)
Share Forfeiture 27,200
Cost of Forfeiture & Reissue 300
Cash at Bank 26,900
(Balance in share forfeiture fund, after adjusting cost of
forfeiture & reissue, refunded to the shareholders)
08-02-
2018 12% Reedemable Preference Share Capital
1,80,00
0
Premium on Redemption of Preference Shares 12,000
Cash at Bank
1,92,00
0

4FINANCIAL ACCOUNTING ASSIGNMENT
(120,000, 12% reedemable preference shares reedemed
with a premium of $0.10 per share)
Retained Earnings 12,000
Premium on Redemption of Preference Shares 12,000
(Premium,paid on reedemption of preference shares,
transferred to retained earnings)
28-02-
2018 "A" Ordinary Share Interim Dividend 20,000
"B" Ordinary Share Interim Dividend 25,200
Cash at Bank 45,200
(Interim Dividends on "A" Ordinary shares & "B" Ordinary
shares paid duly)
Retained Earnings 45,200
"A" Ordinary Share Interim Dividend 20,000
"B" Ordinary Share Interim Dividend 25,200
(Interim dividends, paid on ordinary shares, transferred
to retained earnings)
17-03-
2018 "A" Ordinary Share Capital 58,000
Retained Earnings 40,000
Share Re-purchase Cost 4,000
Cash at Bank
1,02,00
0
(20,000,"A" Ordinary shares repurchased @$3.10 per
share, utilising retained earnings, and cost of repurchase
paid duly)
General Reserve 58,000
Capital Redemption Reserve 58,000
(Transfer of nominal value of shares bought back to
capital redemption reserve)
30-06-
2018 Profit & Loss Summary
2,60,00
0
Retained Earnings
2,60,00
0
(Net profit after tax transferred to retained earnings)
Retained Earnings 35,000
General Reserve 35,000

5FINANCIAL ACCOUNTING ASSIGNMENT
(Amount transferred from retained earnings to general
reserve)
Contingencies Reserve 60,000
Retained Earnings 60,000
(Amount transferred from contingencies reserve to
retained earnings)
Retained Earnings 50,400
"A" Ordinary Share Interim Dividend 21,600
"B" Ordinary Share Interim Dividend 28,800
(Final dividends on ordinary shares, payable from
retained earnings, declared)
Accumulated Depreciation-Buildings
3,00,00
0
Buildings,at cost
5,00,00
0
Asset Revaluation Reserve
8,00,00
0
(Book value of building increased to $1,700,000)

6FINANCIAL ACCOUNTING ASSIGNMENT
Bibliography:
Henderson, S., Peirson, G., Herbohn, K., & Howieson, B. (2015). Issues in financial accounting.
Pearson Higher Education AU.
Hoskin, R. E., Fizzell, M. R., & Cherry, D. C. (2014). Financial Accounting: a user perspective.
Wiley Global Education.
Hoyle, J. B., Schaefer, T., & Doupnik, T. (2015). Advanced accounting. McGraw Hill.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & managerial accounting.
John Wiley & Sons.