DO NOT GVIE SOLUTION IN IMAGE Ntabazinduna (Pty) Ltd was incorporated during 2022: Preliminary costs (legal costs incurred inconnection with the start-up of the company) of R5 000 were paid on 2 January 2022. 2 000ordinary no par value shares were issued at R10 each on 5 January 2022. Share issue costs of R2000 were paid on 5 January 2022.On 15 January 2022, 400 of these shares were converted into 12% preference share equity. Thedraft statement of comprehensive income for 2022, before processing any adjustments for theabove transactions, reflected total comprehensive income for 2022 of R125 000 (components ofother comprehensive income:R O). REQUIRED: 2.1 Process journals to account for the preliminary costs, share issue and therelated share issue costs.2.2 Disclose this in the statement of changes in equity for the year ended 31 December 2022.

Journal entry records the accounting transactions of a business in a journal book. All the business…

Answered: Ntabazinduna (Pty) Ltd was incorporated…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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