done this by issuing ordinary shares, preferences shares and debentures to the public Flynn Ltd has a 31 January year end. The following information is relevant: 1) On 1 February 2018 Flynn Ltd had 10 000 000 authorised and 8 000 000 issued ordinary shares. Ordinary shares have a par value of N$2,95 each. On this date the share premium and retained earnings had a balance of nil and N$1 200 000 respectively. 2) On 28 February 2018 Flynn Ltd decided to issue all the remaining authorised shares. Boltic Brokers Ltd underwrote the shares issue in return for a 3% underwriting commission. Flynn Ltd notified shareholders that it would issue ordinary shares for N$3 each. 3) By 31 March 2018, the closing date of the application, Flynn Ltd had received NS4 500 000 from applicants. The maximum number of shares was duly issued on 31 March 2019 and Boltic Brokers Ltd was paid. Flynn Ltd's accounting policy for underwriter commission is to maximise distributable reserves whenever possible. 4) Flynn Ltd issued 300 000, NS2, 14% preference shares on 30 April 2018 at a 5% premium. This was the first time that Flynn Ltd had ever issued preference shares. Preference dividends are payable annually on 31 January, if declared. rest at 0% num

done this by issuing ordinary shares, preferences shares and debentures to the public Flynn Ltd has a 31 January year end. The following information is relevant: 1) On 1 February 2018 Flynn Ltd had 10 000 000 authorised and 8 000 000 issued ordinary shares. Ordinary shares have a par value of N$2,95 each. On this date the share premium and retained earnings had a balance of nil and N$1 200 000 respectively. 2) On 28 February 2018 Flynn Ltd decided to issue all the remaining authorised shares. Boltic Brokers Ltd underwrote the shares issue in return for a 3% underwriting commission. Flynn Ltd notified shareholders that it would issue ordinary shares for N$3 each. 3) By 31 March 2018, the closing date of the application, Flynn Ltd had received NS4 500 000 from applicants. The maximum number of shares was duly issued on 31 March 2019 and Boltic Brokers Ltd was paid. Flynn Ltd's accounting policy for underwriter commission is to maximise distributable reserves whenever possible. 4) Flynn Ltd issued 300 000, NS2, 14% preference shares on 30 April 2018 at a 5% premium. This was the first time that Flynn Ltd had ever issued preference shares. Preference dividends are payable annually on 31 January, if declared. rest at 0% num

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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