On 1 January xl, Annie Bhd issued 25 million, 4% redeemable preference shares at RMI each redeemable at a premium of 18%, on 31 December x4. The effective interest rate is 8% and the interest rate is 31 December. The market price of the shares in vears x1 to x4 is shown below: RM 31 December xł 31 December x2 1.06 1.10 31 December x3 31 December x4 112 18 Required: Discuss the accounting treatment where the preference shares are measured at amortised cost
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- The following information was obtained from the books of Mwangi ltd for the year ended 31st December 2018. Capital structure As 31.12.2018 Ksh Ordinary share capital(par value ksh 30) 4,600,000 8% preference shares (par value ksh 25) 3,400,000 15% debentures stock (issue price ksh 100) 800,000 20% bank loan 2,200,000 Additional information; The market price is as follows Ordinary shares ksh 50 8% preference shares ksh 22 15% debentures ksh 90 The company has maintained a dividend per share of ksh 5 per annum and it is expected to grow in…On 1 June 2021, Double Tree Bhd. Issues RM7 million 7% redeemable preference shares at RM1 each, redeemable at a premium of 10% on 31 May 2024. Dividend is payable on paid-up capital. The effective interest rate is 9.3 % and the interest is due on 31 May every year. Required: Show the extracts from the statements of profit or loss and the statements of financial position for the year 31 May 2021, where the redeemable preference share is measured at amortised cost10,000, P10 par ordinary shares were subscribed on June 1, 2018 for P15 per share. The subscription shall be collected on the following dates: 60% on December 1, 2018 30% on December 1, 2019 10% on December 1, 2020 What amount of subscription receivable shall be presented of equity on December 31, 2018? a.P60,000 b.P0 c.P45,000 d.P15,000
- Pupil, Inc. prepares this journal entry on June 30, 2019. Issued ordinary share capital for P140/share. DR Cash P70,000 CR Ordinary share capital P65,000 CR Ordinary share premium P5,000. How many shares were issued? Using data above, what is the par value per share for this share capital?You have been provided with the following information for the year ended 30 June 2022 for ABCLtd:RNet profit for the year -R1 800 000Weighted average number of shares (WANOS) outstanding during the year-R 120 000Average fair value per share -R30.00Weighted average number of shares (WANOS) under option during the year -R25 000Exercise price for shares under option during the year -R28.00REQUIRED:Q.2.1 Explain the purpose and objective of disclosing diluted earnings per share.On 1 July 2018, Popular Ltd had the following issued capital: 50,000 10% Redeemable preference shares issued at $2 each $100,000 The following transactions occurred during 2021. March 1 A disclosure document was issued inviting applications for 100 000 ordinary shares at an issue price of $2.50, payable in full on application. The main purpose of the issue was to fund the redemption of the preference shares. March 31 The issue was fully subscribed and all money due was received. The shares were then allotted. April 10 The preference shares were redeemed at a price of $2.10 per share. The shares had been classified as equity in the financial statements. For the above transactions the Accountant recorded the following journal entries: March 31 Dr Cash Trust 250,000 Cr Application – Ordinary 250,000 Dr Application – Ordinary 250,000 Cr Share Capital – Ordinary 250,000 Dr Cash 250,000 Cr Cash Trust 250,000 April 10 Dr Share Capital –…
- On 3 October 20X6, Corbin Ltd issued 100,000 5% redeemable GHS 1 preference shares. These shares are redeemable on 3 October 20Y1. In accordance with IAS 32 Financial Instruments: Presentation, how will these shares and their related dividend be shown in Corbin Ltd’s financial statements for the year ended 31 December 20X6?On 3 October 20X6, Corbin Ltd issued 100,000 5% redeemable GHS 1 preference shares. These shares are redeemable on 3 October 20Y1. In accordance with IAS 32 Financial Instruments: Presentation, how will these shares and their related dividend be shown in Corbin Ltd’s financial statements for the year ended 31 December 20X6? Shares Dividend A Non-current liabilities Income statement B Non-current liabilities Statement of changes in equity C Equity Income statement D Equity Statement of changes in equityAnswer the following:a. On July 6, Omanair Corporation issued 4,500 ordinary shares with a RO 7.50 par value. The stated price of the shares on that date was RO 12.50 per share. Journalize the issuance of the shares. b. Duqm Corporation is authorized to issue 1,600,000 ordinary shares with a RO 1.75 par value. During 2020, the company has the following share transactions.Jan. 15 Issued 520,000 ordinary shares at RO 2.50 per share.Provide the journal entry for January 15.
- Alpha company reported the following equity accounts on January 1, 2020. Tpoint hare capital, P20 par, P8,000,000; Share premium, P2,750,000; Retained earnings. P1,275,000. All shares outstanding on January 1 were issued for P26 a share. On December 31. the entity reacquired 20,000 shares at P24 a share and retired them. What is the balance of the share premium?The shareholders' equity section of Monica Avilado Company revealed the following information on December 31, 20i8:Share Premium on preferred shares P 150,000Premium on bonds payable 100,000Share premium conversion option-bonds payable 40,000Authorized ordinary shares at P10 stated value 1,200,000Subscribed preference share 60,000Authorized preference shares at P50 par value 800,000Gain on sale of treasury share…Alpha company reported the following equity accounts on January 1, 2020. Share capital, P20 par, P8,000,000; Share premium, P2,750,000; Retained earnings, P1,275,000. All shares outstanding on January 1 were issued for P26 a share. On December 31, the entity reacquired 20,000 shares at P24 a share and retired them. What is the balance of the share premium?
