On October 16 2017 Smith Company purchased back its own stoc

On October 16, 2017, Smith Company purchased back its own stock. It recorded $1,000,000 as treasury stock on its balance sheet. As of December 31, 2017 (Smith\'s year end) the company\'s stock price is 15% more than it was in October. Discuss what should be recognized on the 12/31/17 financial statements.

Solution

I was very cheerful to be invited to join the Board of administrators and turn out to be Chairman of United Oil & gas plc (United Oil & fuel) in February 2018. I had been very impressed with the aid of the clear vigor and enthusiasm of your administration group and the enterprises achievements to date, and am as a result delighted to reward this annual record for the year to thirty first December 2017.

Strategy

The enterprise has a transparent and focussed approach of constructing a portfolio of low-hazard belongings in Europe to underpin the addition of high have an effect on progress possibilities in Latin the usa, the Caribbean and Africa and 2017 used to be an extraordinarily busy and bold yr of growth for the company in pursuit of that approach.

Key events in 2017

on the opening of 2017 the corporation had one licence in the UK, which included the Wadddock pass area and an adjoining exploration area, however by way of the tip of the year the manufacturer had either brought or was once within the system of adding yet another six licence areas including four extra in the UK, one in Italy and one in Jamaica.

Inside 9 months of farming in to the Podere Gallina licence in Italy the organization had participated in the drilling of a effective good from which robust gas flows tested a big industrial discovery which is now being advanced to development as swiftly as viable. In Jamaica, where United Oil & gasoline farmed in to Tullow\'s very large Walton Morant licence area, the administration crew labored carefully with Tullow in preparation for the acquisition of 3D seismic in 2018.

As good as the operational movements in 2017, a colossal amount of time was dedicated via the management staff to the effective reverse takeover of Senterra vigor p.C.In July 2017 which resulted in the checklist of the manufacturer on the primary market of the London inventory trade by way of a typical listing.

Share fee performance and capital elevating

at the time of list in July 2017 the enterprise\'s share fee was once 2.5p, but by means of the tip of the year it had practically doubled to four.5p. Together with the reverse takeover of Senterra vigor plc (Senterra) in July a placing of a hundred and twenty,000,000 shares at 2.5 p raised £3 million and in December one more putting of 31,250,000 shares at 4p raised a further £1.25 million. In each case the funds raised had been or can be used in support of the corporation\'s 2017/18 work programmes and extra asset deals.

We are very grateful for the support shown to the company in those fundraisings through our current shareholders and of path by way of our new shareholders who we welcome to the organization.

Economic outcome for 2017

As anticipated at this stage within the organizations history with out a cash flow yet from operations the manufacturer made a loss for the year. This lack of £593,414 principally contains administrative expenditure in help of the manufacturers activities, including licence prices, the costs of its work programmes throughout the 12 months and the fees associated with the reverse takeover of Senterra and the fundraisings.

Activities when you consider that year finish

In 2018 so far the corporation has endured the spectacular % of its hobbies; including by means of finishing a farm in to Corallian Licence P1918, which comprise the Colter structure on which a well shall be drilled later this yr, and agreeing an choice to farm in to a potential block in the Southern North Sea. In help of those and its different pursuits the corporation announced on 20 April 2018 a inserting, conditional on shareholder approval, of fifty eight,823,530 shares at four.25p to raise £2.5 million. We hope you\'ll aid the proposals.

Conclusion

2017 was a busy but very positive year for the manufacturer and for your behalf, I would like to thank the management staff for their commitment and enthusiasm and that i look ahead with self assurance to an equally victorious 2018.