Maxi Berhad offered 1 million ordinary shares for issue to public on 1 January 2019 at an issue price of RM1.50 per share. A total amount of RM3,000,000 was received from the applicants on 30 November 2019. The oversubscription of RM1,500,000 was returned to unsuccessful applicants on 20 December 2019. On 31 March 2020, Maxi Berhad declared a 3 for 2 bonus issue. Extract of Maxi Berhad's balance sheet prior to issuance of bonus shares is as follows: Ordinary Share Capital Revaluation Reserve RM 1,500,000 1,500,000 Retained Profits 5.000.000 8,000,000 Required:- State the journal entries required to account for the above transactions and prepare extract of the balance sheet after bonus issue.
Maxi Berhad offered 1 million ordinary shares for issue to public on 1 January 2019 at an issue price of RM1.50 per share. A total amount of RM3,000,000 was received from the applicants on 30 November 2019. The oversubscription of RM1,500,000 was returned to unsuccessful applicants on 20 December 2019. On 31 March 2020, Maxi Berhad declared a 3 for 2 bonus issue. Extract of Maxi Berhad's balance sheet prior to issuance of bonus shares is as follows: Ordinary Share Capital Revaluation Reserve RM 1,500,000 1,500,000 Retained Profits 5.000.000 8,000,000 Required:- State the journal entries required to account for the above transactions and prepare extract of the balance sheet after bonus issue.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Maxi Berhad offered 1 million ordinary shares for issue to public on 1 January 2019
at an issue price of RM1.50 per share. A total amount of RM3,000,000 was received
from the applicants on 30 November 2019. The oversubscription of RM1,500,000
was returned to unsuccessful applicants on 20 December 2019. On 31 March 2020,
Maxi Berhad declared a 3 for 2 bonus issue.
Extract of Maxi Berhad's balance sheet prior to issuance of bonus shares is as
follows:
RM
Ordinary Share Capital
Revaluation Reserve
1,500,000
1,500,000
5.000,000
8,000,000
Retained Profits
Required:-
State the journal entries required to account for the above transactions and prepare
extract of the balance sheet after bonus issue.
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