Belson Ltd. was organized on January 1, 20X4, with 300,000 no par value common shares authorized. During 20X4, the corporation had the following share transactions:

$\begin{array}{|l|l|}
\hline \text { Jan } 4 & \text { Issued } 120,000 \text { shares at } \$ 10 \text { per share } \
\hline \text { Mar } 8 & \text { Issued } 40,000 \text { shares at } \$ 11 \text { per share } \
\hline \text { May } 17 & \text { Purchased } 15,000 \text { shares at } \$ 12 \text { per share and cancelled them } \
\hline \text { Jul } 6 & \text { Issued } 30,000 \text { shares at } \$ 13 \text { per share } \
\hline \text { Aug 27 } & \text { Issued } 10,000 \text { shares at } \$ 14 \text { per share } \
\hline
\end{array}$
-The total amount of contributed surplus at December 31, 20X4 is

Question

Belson Ltd. was organized on January 1, 20X4, with 300,000 no par value common shares authorized. During 20X4, the corporation had the following share transactions:

$\begin{array}{|l|l|}
\hline \text { Jan } 4 & \text { Issued } 120,000 \text { shares at } \$ 10 \text { per share } \
\hline \text { Mar } 8 & \text { Issued } 40,000 \text { shares at } \$ 11 \text { per share } \
\hline \text { May } 17 & \text { Purchased } 15,000 \text { shares at } \$ 12 \text { per share and cancelled them } \
\hline \text { Jul } 6 & \text { Issued } 30,000 \text { shares at } \$ 13 \text { per share } \
\hline \text { Aug 27 } & \text { Issued } 10,000 \text { shares at } \$ 14 \text { per share } \
\hline
\end{array}$
-The total amount of contributed surplus at December 31, 20X4 is

Quizplus · Accepted Answer

Contributed surplus typically arises from transactions such as the issuance of shares above their par value. However, in this case, since the shares have no par value, the entire proceeds from the issuance of shares are recorded as common stock (or share capital), not contributed surplus. The purchase and cancellation of shares also do not affect contributed surplus. Therefore, there is no contributed surplus generated from these transactions.

Belson Ltd -The Total Amount of Contributed Surplus at December 31, 20X4