Nydalen Inc
Subject:AccountingPrice: Bought3
Nydalen Inc. has equipment that cost kr 650,000 and for which it has recorded accumulated depreciation of kr 330,000. Record the disposal under the following assumptions. a. It was scrapped as having no value. b. It was sold for kr 250,000. c. It was sold for kr 350,000. Exercise 5 (45 points) Loki Limited has the following equity accounts on January 1, 2021: Share Capital - Ordinary (€5 par, 150,000 shares issued) €750,000 Share Premium-Ordinary €250,000 Retained Earnings €120,000. . . In 2021, the company had the following equity related transactions. March: Issued 15,000 ordinary shares at a price of €15. May: The board of directors announced a share dividend equal to €0.50 per share. June: The dividend is paid August: The company repurchases 12,000 shares at €10 per share. September: Sold 6,000 shares at €13 per share. October: Sold 6,000 shares at €6 per share. . Loki uses the cost method of accounting for treasury shares. In 2021, the company reported net income of €40,000. Instructions a. Journalize the transactions, and prepare the closing entries as of December 31, 2021, for net income and cash dividends. b. Open T-accounts for (1) Share Capital Ordinary; (2) Share Premium - Ordinary; (3) Treasury Shares; (4) Share Premium-Treasury, (5) Retained Earnings. Post to these accounts (without using a posting reference). c. Prepare the equity section for Loki Limited Limited as of December 31, 2021.
