Dinar Harvest Bhd (DHB) ventures in property development in Malaysia. DHB provides the following information on 1 January 2021: RM 300,000 Ordinary Share Outstanding 50,000 9% Preference Shares Retained Earnings Dividend Distributable 1,275,000 1,000,000 1,113,500 315,000 127,500 Dividend Payable The following are transactions related to DHB's equity throughout the year 2021: 1. Paid in full the amount of cash dividend declared. 2. Issued 75,000 ordinary shares declared as share dividend in the previous year. 3. Issued 120,000 ordinary shares at a market price of RM4.15 per share. The cost related to the issuance were professional fees RM3,700 and stamp duties RM50. 4. Declared cash dividend for the year 2021. The cash dividend for ordinary shares was RM0.85 per share, payable in February 2022. The reported net profit for the year was RM888,990. REQUIRED: (Show all the working) (a) Prepare necessary journal entries to record the above transactions. (b) Prepare the Statement of Financial Position as at 31 December 2021, showing only the equity section. (c) If the company decides to declare a share dividend instead of cash, explain the effects on the company's asset, liability and equity.

Dinar Harvest Bhd (DHB) ventures in property development in Malaysia. DHB provides the following information on 1 January 2021: RM 300,000 Ordinary Share Outstanding 50,000 9% Preference Shares Retained Earnings Dividend Distributable 1,275,000 1,000,000 1,113,500 315,000 127,500 Dividend Payable The following are transactions related to DHB's equity throughout the year 2021: 1. Paid in full the amount of cash dividend declared. 2. Issued 75,000 ordinary shares declared as share dividend in the previous year. 3. Issued 120,000 ordinary shares at a market price of RM4.15 per share. The cost related to the issuance were professional fees RM3,700 and stamp duties RM50. 4. Declared cash dividend for the year 2021. The cash dividend for ordinary shares was RM0.85 per share, payable in February 2022. The reported net profit for the year was RM888,990. REQUIRED: (Show all the working) (a) Prepare necessary journal entries to record the above transactions. (b) Prepare the Statement of Financial Position as at 31 December 2021, showing only the equity section. (c) If the company decides to declare a share dividend instead of cash, explain the effects on the company's asset, liability and equity.

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 10P: Comprehensive The shareholders equity section of Superior Corporations balance sheet as of December...

See similar textbooks

Similar questions

Blossom SA reported the following balances at December 31, 2019: share capital-ordinary €530,000, share premium-ordinary €115,000, and retained earnings €310,000. During 2020, the following transactions affected equity. 1. Issued preference shares with a par value of €140,000 for €247,000. 2. Purchased treasury shares (ordinary) for €45,000. Earned net income of €174,000. Declared and paid cash dividends of €52,000 3. 4. Prepare the equity section of Blossom SA's December 31, 2020, statement of financial position.
Please help me
Comprehensive The shareholders equity section of Superior Corporations balance sheet as of December 31, 2018, is as follows: The following events occurred during 2019: Required: 1. Prepare journal entries for each of the above transactions. 2. Calculate the number of authorized, issued, and outstanding common shares as of December 31, 2019. 3. Calculate Superior's legal capital at December 31, 2019.
Task 1 Hussain Co. prepared the following trial balance on 31st December 2020 before taking account of the additional information below: Hussain Co. Trial balance as on 31st December 2020 Debit Credit OMR OMR Revenue 2,070,000 Purchases 1,176,000 Building - Cost 350,000 Building – accumulated depreciation at 1 January 2020 75,000 Fixtures & fitting – Cost 386,000 Fixtures & fitting – accumulated depreciation at 1 January 2020 76,600 Land – Cost 300,000 Trade and other receivables 37,500 Trade and other payables 83,200 6% Debentures (redeemable at par on 1 September 2022) 40,000 Cash and cash equivalents 29,000 Retained earnings 72,700 Share Capital (R.0 1 shares) 420,000 Share premium 99,000 Distribution costs 276,000 Administrative expenses 289,000 Inventories as at 1 January 2020 12,000 Dividend paid for year ended December 2020 84,000 2,939,500 2,939,500
Find the: 1. The balance of the “Shareholders’ Equity” account of the company’s balance sheet as of December 31, 2021 2. The book value per share of the company’s share as of December 31, 2021.
Karanji Tegar Bhd (KTB), an oil and gas company has 6,000,000 ordinary shares with a market value of RM2.55 per share as of 1 January 2020. On that date, the equity section also showed RM250,000,000 retained earnings balance and RM3,000,000 revaluation reserve balance. The following transactions related to KTB during the year 2020:1. On 11 January 2020, the company issued 250,000 ordinary shares at RM2.40 each payable in full on application. Actual applications for 400,000 ordinary shares were received. Balloting was carried to select the successful applicants and cash received from unsuccessful applicants were returned on 28 February 2020. Other costs paid was RM2,800 for underwriters' fees, RM4,000 for legal fees and RM400 for printing. 2. On 30 September 2020, the company declared a 2% share dividend to existing shareholders. The share dividend was distributed on the same date. The market price of the share was RM2.60. 3. On 31 December 2020, the company declared a cash dividend of…
Maria Ltd has the following capital structures as at 31/4/2019 ordinary shares capital (400,000 shares) of ksh. 16,000,000 10% prefence share capital of ksh. 2,000,000 14% Bond capital of ksh. 14,000,000 The market price of each ordinary shares as at 31/4/2019 was sh. 40. the firm paid a divinded of sh. 4 for each ordinary shares for the year ended 31/4/2019. The annual growth rate in the divinded is 7%. The corporation tax rate is 30% Compute the cost of equity and Debt Compute the weighted average cost of capital of the firm as at 31/4/2019
Required: Give the journal entries to record the foregoing transactions and prepare the equity section of the statement of financial position as of January 31, 2020 under a. memorandum entry method, b.journal entry method The following are the transactions of JEYA Inc. for the month of January 2020. January 5 officially formed the corporation with 5,000,000 authorized share capital at P10 par value. January 6 the incorporators subscribed and paid in full 1,000,000 shares. January 8 issued 500,000 shares to an investors for P15 per share. January 10 received subscription from an investor for 200,000 shares at P20 per share. January 15 issued 5,000 shares for incorporation services rendered by a consultancy firm. The service is worth P100,000. January 20 issued 500,000 shares for P16 per share. January 24 collected the payment for subscription on January 10. January 27 received subscription for 1,000,000 shares at P11 per share receiving 50% advanced payment. January 30 issued 2,000…
Given below are the Balance Sheets of A Ltd. and P Ltd. as on 31st March. 2016. On this date A Ltd. absorbs P Ltd. A Ltd. P Ltd. I. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital : 10% 1,000 Pref. Shares of $ 100 each Equity Shares of $ 10 each fully paid (b) Reserves and Surplus : Dividend Equalisation Reserve General Reserve Surplus A/c (subject to payment of dividend on equity and preference shares) 1,00,000 10,00,000 8,00,000 1,00,000 80,000 20,000 1,90,000 (2) Non-current Liabilities Debentures 1,20,000 (3) Current Liabilities Bills Payable- 20,000 Other Liabilities 1,80,000 1,80,000 Total Equity and Liabilities 14,00,000 13,90,000 п. Аssets (1) Non-eurrent Assets Fixed Assets 6,00,000 8,00,000 Investments at Cost : 2,000 Equity Shares of P Ltd. @ $ 12 each Debentures of P Ltd. (Face Value $ 40,000) 24,000 36,000 20,000 7,20,000 Other Investments (2) Current Assets 10,000 5,80,000 Bills Receivable Others Totał Assets | 14,00,000 13,90,000 The whole of the…
REQUIRED Use the information provided below to prepare the Statement of Changes in Equity of Sooraya Enterprises/Partnership for the year ended 28 February 2022. INFORMATION Extract from the ledger of Sooraya Enterprises on 28 February 2022 R Capital: Soo 450 000 Capital: Raya 350 000 Current a/c: Soo (01 March 2021) Current a/c: Raya (01 March 2021) Drawings: Soo Drawings: Raya The following must be taken into account: 30 000 CR 25000 DR 220 000 260 000 1. On 28 February 2022 the Profit and Loss account reflected a net profit of R 880 000. 2. Partners are entitled to interest at 12% p.a. on their capital balances. Note: Soo increased her capital contribution by R180 000 on 01 September 2021. The capital increase has been recorded. 3. The partners are entitled to the following monthly salaries for the first 6 months of the financial year: Soo R15 000 Raya R11 000 From 01 September 2021, the partners will be entitled to annual salaries of R144 000 each. 4. Raya is entitled to a bonus…
Required: 1. The carrying value of investment in King Inc. shares in 2019 is? 2. How much should be reported another comprehensive income/loss in the statement of comprehensive income for 2019 in relation to the investments? Thank you! Please answer complete
The following is the Balance sheet of Moin lilited as on 31st march 2020. You are required to comment on the Liquidity of the Company Liabilities Amount 5,00,000 Equity Share Capital 8% preference Share Capital 10%long term loans 14%debentures Sundry creditors Bills payable Provision for taxation Proposed preference dividend Bank overdraft 3,00,000 3,25,000 1,50,000 75,000 30,000 70,000 24,000 20,000 14,94,000 Assets Goodwill Premises Machinery Trade investments Short term investment Stock Debtors Bills payable Cash Prepaid expenses Amount 1,00,000 3,00,000 4,50,000 1,00,000 44,000 1,75,000 1,75,000 1,25,000 10,000 15,000 14,94,000