Macpie Prima Bhd. (MPB) was formed on 1 July 2000. The following data were taken from the Statement of Financial Position of MPB on 30 June 2018. RM Share capital – Ordinary 150,000,000 shares outstanding 277,500,000 Retained earnings 98,523,150 Fair value reserve 255,000 During the financial year 2019, the following transactions took place: 1. 120,000 ordinary shares were issued for cash on 15 August 2018 at RM2.30 per share. Transaction costs incurred were as follows: i) Legal fees RM10,500 ii) Underwriters fees RM 8,200 2. MPB has followed a schedule of declaring cash dividends in December and June with payment being made to shareholders of record in the following month. The cash dividends declared since 2018 were shown below: Declaration Date Dividend 15 June 2018 3 sen per share 15 December 2018 2 sen per share 15 June 2019 - No cash dividends were declared during June 2019 due to the company’s liquidity problem. 3. During the financial year 2019, fair value reserve decreased by RM47,000 due to the weaker stock market performance. 4. Profit for the financial year 2019 was RM6,523,000. REQUIRED: Prepare the Statement of Changes in Equity for MPB for the year ended 30 June 2019 in accordance with the requirements of MFRS 101 Presentation of Financial Statements Prepare journal entries to record the issuance of shares and dividend payments in the financial year 2019.
Macpie Prima Bhd. (MPB) was formed on 1 July 2000. The following data were taken from the
RM
Share capital – Ordinary 150,000,000 shares outstanding 277,500,000
Fair value reserve 255,000
During the financial year 2019, the following transactions took place:
1. 120,000 ordinary shares were issued for cash on 15 August 2018 at RM2.30 per share. Transaction costs incurred were as follows:
i) Legal fees RM10,500
ii) Underwriters fees RM 8,200
2. MPB has followed a schedule of declaring cash dividends in December and June with payment being made to shareholders of record in the following month. The cash dividends declared since 2018 were shown below:
Declaration Date Dividend
15 June 2018 3 sen per share
15 December 2018 2 sen per share
15 June 2019 -
No cash dividends were declared during June 2019 due to the company’s liquidity problem.
3. During the financial year 2019, fair value reserve decreased by RM47,000 due to the weaker stock market performance.
4. Profit for the financial year 2019 was RM6,523,000.
REQUIRED:
Prepare the Statement of Changes in Equity for MPB for the year ended 30 June 2019 in accordance with the requirements of MFRS 101 Presentation of Financial Statements
Prepare
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