Maxi Berhad offered 1 million ordinary shares for issue to public on 1 January 2018 having...

Maxi Berhad offered 1 million ordinary shares for issue to public on 1 January 2018 having face value of RM1 each at an issue price of RM1.50 per share. Maxi Berhad requires the equity injection to finance a new project. The minimum amount of subscription necessary for the project is RM1,250,000. As per the terms of the issue of shares, RM1.50 per share was to be received in full from the applicantson 30November 2018. A total amount of RM3,000,000 was received. The oversubscription of RM1,500,000 wasreturned to unsuccessfulapplicants on 20 December 2018. On 31 January2020, Maxi Berhad declared a 3 for2 bonus issue. Extract of Maxi Berhad's balance sheet prior to issuance of bonus shares is as follows: RM OrdinaryShare Capital 1,500,000 Revaluation Reserve 1,500,000 Retained Profits 5,000,000 8,000,000 Required: (a) State the journal entries required to account for the above transactions and prepare extract of the balance sheet after bonus issue

Expert Solution

ekkarill92 answered 2 years ago

July 1 The company decided that 1,500,000 ordinary shares were to be offered to the public...

July 1 The company decided that 1,500,000 ordinary shares were to be offered to the public at an issue price of $3, payable as follows: $1.50 on application (due 1 August) $0.50 on allotment (due 30 August) $1 on future calls August 1 Applications had been received for 1,750,000 shares of which applicants for 300,000 shares forwarded the full $3 per share, the remainder paying only the application money. August 5 At the directors’ meeting it was decided to allot...

On 1 July 2019, Vajra Ltd was incorporated and offered 2,500,000 ordinary shares to the public...

On 1 July 2019, Vajra Ltd was incorporated and offered 2,500,000 ordinary shares to the public at an issue price of $4.00 per share, with $1.50 payable on application, and $1.50 upon allotment (due within one month of allotment) and $1.00 payable on another call to be made at a later date. The issue is underwritten at a commission of $42,000. By 31 July 2019, applications had been received for 2,450,000 shares. On 12 August 2019, shares were allotted, and...

(a) Fenton had 5,000,000 ordinary shares in issue on 1 January 20X1. On 31 January 20X1,...

(a) Fenton had 5,000,000 ordinary shares in issue on 1 January 20X1. On 31 January 20X1, the company made a rights issue of 1 for 4 at $1.75. The C*m rights price was $2 per share. On 30 June 20X1, the company made an issue at full market price of 125,000 shares. Finally, on 30 November 20X1, the company made a 1 for 10 bonus issue. Profit for the year was $2,900,000. The reported EPS for year ended 31 December...

Satsuma Berhad bought 8 % of Natural Herb 's ordinary shares for RM210 million on 2January...

Satsuma Berhad bought 8 % of Natural Herb 's ordinary shares for RM210 million on 2January 2016. Under general conditions, the shares would be categorized by Satsuma as an Available for Sale. However, Satsuma elected the fair value option for the investment. On 31 December 2016, the fair value of the shares held by Satsuma was RM215 millior. Meanwhile, Natural Herb's net income for the year ended 31 December 2016 was RM320 million. Dividend declared by Natural Herb during 2016...

Choco Company had the following capital structure at January 1, 2018: Outstanding Ordinary shares, 600,000 shares...

Choco Company had the following capital structure at January 1, 2018: Outstanding Ordinary shares, 600,000 shares $7,200,000 10% stated interest rate convertible bonds issued at par; each $1,000 bond is convertible into 80 ordinary shares $5,000,000 During 2018, Choco had the following share transactions: May 1 Issued 50,000 ordinary shares for $30 per share. Sep. 1 Redeemed 100,000 ordinary shares at $35 per share. Nov. 1 Converted $2,000,000 of bonds. Net income for 2018 was $1,900,000. The income tax rate...

PUKALANI Corporation was organized on January 1, 2018. It is authorized to issue 20,000 shares of...

PUKALANI Corporation was organized on January 1, 2018. It is authorized to issue 20,000 shares of $3-noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the first year. Jan. 1 Issued 77,000 common shares for cash at $3 per share. Mar. 1 Issued 12,400 preferred shares for cash at $56 per share. May 1 Issued 123,000 common shares for cash at $5 per share. Sept. 1 Issued 4,500 common shares for cash...

GOLDEN Corporation was organized on January 1, 2018. It is authorized to issue 22,000 shares of...

GOLDEN Corporation was organized on January 1, 2018. It is authorized to issue 22,000 shares of $3-noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the first year. Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round average cost per share to 2 decimal places, e.g. 2.55 and answers to the nearest dollar e.g. 5,121. If no entry is required, select...

Problem 3: Suppose On 1 Jan. 2019 XYZ Corporation issued 1 million ordinary shares having face...

Problem 3: Suppose On 1 Jan. 2019 XYZ Corporation issued 1 million ordinary shares having face value of $1 each at an issue price of $2.5 per share. As per the terms of the issue, the full amount due had been received by the corporationby 10 Jan. 2019. The Corporationreceived 200% subscription on its share issue. By 31 Jan, the Corporation completed allotment of 1 million shares and returned the excess money to its investors. As on 31 Jan 2019...

January 8 A prospectus was issued, inviting applications for 200,000 “B” ordinary shares at an issue...

January 8 A prospectus was issued, inviting applications for 200,000 “B” ordinary shares at an issue price of $2, payable full on application. The purpose of the issue was to fund the redemption of the preference shares. 200,000 “A” ordinary shares, issued at $1, fully paid $ 200,000 100,000 redeemable preference shares, issued at $ 4, fully paid $ 400,000 50,000 $2 Options $ 100,000 Asset revaluation reserve $ 100,000 Retained earnings $ 770,000 February 8 The issue closed fully...

RCK Ltd issues a prospectus inviting the public to subscribe for 90 million ordinary shares of...

RCK Ltd issues a prospectus inviting the public to subscribe for 90 million ordinary shares of $2.00 each. The terms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month of allotment. Applications are received for 108 million shares during July 2018. The directors allot 90 million shares on 15 August 2018. All applicants receive shares on a pro rata basis. The amounts payable on allotment are due by 20 September...

Question