b) Energy Sdn Bhd was recorded with an authorized capital of 200,000 7% preference sharesof RM1.00 each and 1,000,000 ordinary shares of RM2.00 each. On 30 October 2016,Board of Directors decided to offer and issue 250,000 ordinary shares of RM2.00 each atthe price of RM2.30. The payment for the issuance of shares were as follows:On applicationRM 0.60On allotmentRM 0.70 (including premium)On 1 callRM 0.70On 2nd callRM 0.30On the last day of application, 400,000 shares application were received and Boara ofDirectors decided to reject 100,000 unsuccessful shares and the money will be refunded.The surplus money on application will be transferred to the allotment account.All monies were duly collected upon application except for a shareholder name Ammarwith 10,000 shares has paid the 2nd call during the 1 call, and another shareholder nameAmyra who has3,000 shares failed to pay the 2nd call money.You are required to prepare the journal entries to record all the transactions.

In order to accumulate capital a company can issue ordinary shares as well as preference shares.…

of RM1.00 each and 1,000,000 ordinary shar Energy Sdn Bhd was recorded with an authorized capital of 200,000 7% preference shares of RM1.00 each and 1,000,000 ordinary shares of RM2.00 each. On 30 October 2016, Board of Directors decided to offer and issue 250,000 ordinary shares of RM2.00 each at the price of RM2.30. The payment for the issuance of shares were as follows: On application RM 0.60 On allotment RM 0.70 (including premium) On 1" call RM 0.70 On 2nd call RM 0.30

of RM1.00 each and 1,000,000 ordinary shar Energy Sdn Bhd was recorded with an authorized capital of 200,000 7% preference shares of RM1.00 each and 1,000,000 ordinary shares of RM2.00 each. On 30 October 2016, Board of Directors decided to offer and issue 250,000 ordinary shares of RM2.00 each at the price of RM2.30. The payment for the issuance of shares were as follows: On application RM 0.60 On allotment RM 0.70 (including premium) On 1" call RM 0.70 On 2nd call RM 0.30

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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