Will Bhd closes its accounts on 31 December annually. On 2 January 2020, the company offered 5,000,000 ordinary shares at RM1 per share to the public and 3,000,000 preference shares at RM2 per share to selected investors. Full payment of both shares must be made upon application. On 31 January 2020 (closing date of application), the company received RM6,000,000 for ordinary shares application and RM6,000,000 for preference shares application. On 28 February 2020, the surplus application money was fully refunded.

Will Bhd closes its accounts on 31 December annually. On 2 January 2020, the company offered 5,000,000 ordinary shares at RM1 per share to the public and 3,000,000 preference shares at RM2 per share to selected investors. Full payment of both shares must be made upon application. On 31 January 2020 (closing date of application), the company received RM6,000,000 for ordinary shares application and RM6,000,000 for preference shares application. On 28 February 2020, the surplus application money was fully refunded.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 19P: Anoka Company reported the following selected items in the shareholders equity section of its...

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Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?
Sintok Niaga Bhd issues 40,000 shares at RM1 each during the year ended 31 December 2019. The applications are received with full payment on October 31, 2019 for 100,000 shares. The shares are subsequently allotted on December 31, 2019 to the successful applicants, while unsuccessful applicants are refunded at the same date. Show the journal entries to record the transactions. Sintok Niaga Bhd had the following transactions pertaining to its ordinary shares during the first year of operations. Jan 10 Issued 80,000 shares for cash at RM6 per share. Mar 1 Issued 5,000 shares to lawyer in payment of a bill for RM40,000 for services rendered in helping the company to incorporate. July 1 Issued 30,000 shares for cash at RM8 per share. Sep 1 Issued 60,000 shares for cash at RM10 per share. REQUIRED: Prepare the journal entries to record the transactions.
Sintok Niaga Bhd issues 40,000 shares at RM1 each during the year ended 31 December 2019. The applications are received with full payment on October 31, 2019 for 100,000 shares. The shares are subsequently allotted on December 31, 2019 to the successful applicants, while unsuccessful applicants are refunded at the same date. Show the journal entries to record the transactions. Maxwell had the following transactions pertaining to its ordinary shares during the first year of operations. Jan 10 Issued 80,000 shares for cash at RM6 per share. Mar 1 Issued 5,000 shares to lawyer in payment of a bill for RM40,000 for services rendered in helping the company to incorporate. July 1 Issued 30,000 shares for cash at RM8 per share. Sep 1 Issued 60,000 shares for cash at RM10 per share. REQUIRED: Prepare the journal entries to record the transactions.
Maxi Berhad offered 1 million ordinary shares for issue to public on 1 January 2019 at an issue price of RM1.50 per share. A total amount of RM3,000,000 was received from the applicants on 30 November 2019. The oversubscription of RM1,500,000 was returned to unsuccessful applicants on 20 December 2019. On 31 March 2020, Maxi Berhad declared a 3 for 2 bonus issue. Extract of Maxi Berhad's balance sheet prior to issuance of bonus shares is as follows: RM Ordinary Share Capital Revaluation Reserve 1,500,000 1,500,000 5.000,000 8,000,000 Retained Profits Required:- State the journal entries required to account for the above transactions and prepare extract of the balance sheet after bonus issue.
4. ABC Co. issued a prospectus for the issue of 900,000shares at $6 per shares on 1 January 2019. The prospectus specified that $3.50 was payable on application, a further $1.25 was payable on allotment and the final $1.25 was payable at call. On 31 January 2019 ABC issued 300,000 shares. On 31 May 2019, the company made the call for the outstanding balance of $1.25 per share. The call was payable by 30 June 2019. At 30 June 2019, the call on 30,000 shares remained unpaid.Instructions:a) Prepare the journal entries to account for the issue of shares for ABC andb) The Share Capital that would appear in the Balance Sheet of ABC Co.
4. ABC Co. issued a prospectus for the issue of 900,000shares at $6 per shares on 1 January 2019. The prospectus specified that $3.50 was payable on application, a further $1.25 was payable on allotment and the final $1.25 was payable at call. On 31 January 2019 ABC issued 300,000 shares. On 31 May 2019, the company made the call for the outstanding balance of $1.25 per share. The call was payable by 30 June 2019. At 30 June 2019, the call on 30,000 shares remained unpaid.Instructions:b) The Share Capital that would appear in the Balance Sheet of ABC Co. (2marks)
Sedunia Berhad was incorporated on 1 July 2020. On 1 August, it decided to issue300,000 ordinary shares on the following terms:Application RM1 per share Allotment RM2 per shareCall as required RM1 per shareTo the end of August, applications for 350,000 shares had been received together withthe application money due on each share. One applicant for 5,000 shares had forwardedRM20,000 in full payment of the shares.On 15 September, the directors proceeded to allot 300,000 ordinary shares on thefollowing basis. Applicants for 30,000 shares were refunded their application money infull, 5,000 shares were allotted to the applicant who paid for the shares in full, and theother successful applicants were allotted the remaining shares, excess application moneybeing transferred to allotment.On 7 October, all allotment money had been received.A first and final call was made on 1 November, and all call money was received by 30November with the exception of the amount due on 6,000 shares.Required:(a)…
Sedunia Berhad was incorporated on 1 July 2020. On 1 August, it decided to issue300,000 ordinary shares on the following terms:Application RM1 per share Allotment RM2 per shareCall as required RM1 per shareTo the end of August, applications for 350,000 shares had been received together withthe application money due on each share. One applicant for 5,000 shares had forwardedRM20,000 in full payment of the shares. On 15 September, the directors proceeded to allot 300,000 ordinary shares on thefollowing basis. Applicants for 30,000 shares were refunded their application money infull, 5,000 shares were allotted to the applicant who paid for the shares in full, and theother successful applicants were allotted the remaining shares, excess application moneybeing transferred to allotment. On 7 October, all allotment money had been received.A first and final call was made on 1 November, and all call money was received by 30November with the exception of the amount due on 6,000 shares.…
Sedunia Berhad was incorporated on 1 July 2020. On 1 August, it decided to issue300,000 ordinary shares on the following terms:Application RM1 per share Allotment RM2 per shareCall as required RM1 per shareTo the end of August, applications for 350,000 shares had been received together withthe application money due on each share. One applicant for 5,000 shares had forwardedRM20,000 in full payment of the shares.On 15 September, the directors proceeded to allot 300,000 ordinary shares on thefollowing basis. Applicants for 30,000 shares were refunded their application money infull, 5,000 shares were allotted to the applicant who paid for the shares in full, and theother successful applicants were allotted the remaining shares, excess application moneybeing transferred to allotment.On 7 October, all allotment money had been received.A first and final call was made on 1 November, and all call money was received by 30November with the exception of the amount due on 6,000 shares.Required:(a)…
Southern Cross Ltd issued a prospectus for the issue of 150,000, $6 shares on 1 January 2022. The prospectus specified that $4 was payable on application, with the balance payable on the allotment. By 2 February 2022, the company received applications for a total of 170,000 shares. On 4 February 2022, Southern Cross Ltd allotted 150,000 shares. the Directors of Southern Cross Ltd decided to refund the money in relation to unsuccessful applications. All of the allotment money was received by 20 February 2022. Required: Prepare the journal entries to account for the issue of shares by Southern Cross Ltd.
ABC SAOG has in issue 2,000,000 ordinary shares of OMR 0.500 fully paid. On 31st Dec 2018 management board has decided to pay a dividend of 100 baisa on each ordinary share which was readily approved by the shareholders. The date of payment was 10th March 2019. During the year the company earned a profit after tax of OMR 200,000. The company paid the amount of dividends for the ordinary shareholders for the year 2019. What will be the Net Retained earnings after the payment of dividend to shareholders assuming that the company had opening Retained earnings on 1st January 2018 of OMR 800,000? a. OMR 1,000,000 b. OMR 600,000 c. OMR 800,000 d. OMR 300,000 The amount of ordinary dividend to be distributed to the shareholder is a. OMR 200,000 b. OMR 1,000,000 c. OMR 700,000 d. OMR 400,000
In January 2019, ABC Limited called for subscriptions for 12 millions of shares. The issue price per share was $1.0 to be paid in four parts, these being $0.4 on application, $0.3 in the first call on 31 March, $0.20 in the second call on 31 July and $0.10 in the third call on 30 September. RequiredProvide the accounting entries to record the issue of ABC Limited’s shares.