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ordinary shares. The subscribers to the memorandum subscribed for and paid for 4 000 shares at R1 each and were allotted the shares on 1 January. The company then offer blis 06.000 fall

ordinary shares. The subscribers to the memorandum subscribed for and paid for 4 000 shares at R1 each and were allotted the shares on 1 January. The company then offer blis 06.000 fall

FINANCIAL ACCOUNTING
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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EXERCISE 9.1 9.1 Kusasa Limited was formed on 1 January 2015 with an authorised capital consisting of 150 000 ordinary shares. The subscribers to the memorandum subscribed for and paid for 4 000 ordinary shares at R1 each and were allotted the shares on 1 January. The company then offered to the public 96 000 ordinary shares at R1.10 per share. The issue was fully underwritten by Martin Finance House for a commission of 6% of the issue price. The public applied for 90 000 ordinary shares and all application money was received by 4 January. The shares were allotted on 8 January. On the same date the company paid the underwriting commission and share issue expenses of R3 000. On 28 February the company purchased the following assets: Motor vehicles R80 000 Furniture and equipment R30 000 During the year the company made a profit of R10 556. The bank balance on 31 December 2015 was R820. REQUIRED: Prepare: (a) (b) Journal entries to record the above transactions. Narrations may be omitted. Closing entries are not required. The Statement of Financial Position at 31 December 2015 and Statement of Changes in Equity for the year ended 31 December 2015 of Kusasa Limited. These statements should comply with International Financial Reporting Standards (insofar as the necessary information is given above).
Transcribed Image Text:EXERCISE 9.1 9.1 Kusasa Limited was formed on 1 January 2015 with an authorised capital consisting of 150 000 ordinary shares. The subscribers to the memorandum subscribed for and paid for 4 000 ordinary shares at R1 each and were allotted the shares on 1 January. The company then offered to the public 96 000 ordinary shares at R1.10 per share. The issue was fully underwritten by Martin Finance House for a commission of 6% of the issue price. The public applied for 90 000 ordinary shares and all application money was received by 4 January. The shares were allotted on 8 January. On the same date the company paid the underwriting commission and share issue expenses of R3 000. On 28 February the company purchased the following assets: Motor vehicles R80 000 Furniture and equipment R30 000 During the year the company made a profit of R10 556. The bank balance on 31 December 2015 was R820. REQUIRED: Prepare: (a) (b) Journal entries to record the above transactions. Narrations may be omitted. Closing entries are not required. The Statement of Financial Position at 31 December 2015 and Statement of Changes in Equity for the year ended 31 December 2015 of Kusasa Limited. These statements should comply with International Financial Reporting Standards (insofar as the necessary information is given above).
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