QUESTION 3 Daebak Berhad was formed on April 1, 2000. The company reported the following summarized Statement of Financial Position at April 1, 2018: Daebak Berhad Partial Statement of Financial Position as at 1 April 2018 RM Assets Cash 557,000 1,293,000 1,850,000 Other assets Total assets Liabilities and Equity Equity Ordinary share capital, 150,000 issued 9% Preference share capital, 70,000 issued Retained earnings 600,000 175,000 670,000 1,445,000 Liabilities Other liabilities Dividend payable Total liabilities and equity 365,000 40,000 1,850,000 The following transactions occurred during the year ended March 31, 2019 but have yet to be recorded: 1. On 2 April 2018, the company issued 9% RM100,000 par value bonds payable for RM96,149. The bonds pay interest on 31 December annually and will matures in five years. The annual market rate on the date of issue is 10%. 2. Paid dividends payable to shareholders on 1 May 2018. 3. The company issued a prospectus to the public to invite for subscription of 60,000 ordinary shares at a value of RM4.50 each on 15 July 2018. All shares were fully subscribed and payable in full upon application. The cost of share issue is RM11,000. 4. On 10 September 2018, the company paid interim dividend of RM63,000. 5. Issued bonus shares on 1 November 2018, at a ratio of one for every twenty shares held. Market value per share was RMS.50. The retained earnings account is utilised for this purpose. 6. Obtained a loan amounting RM45,000 from Awam Bank Berhad at 5% per year on 2 February 2019. 7. On 15 February 2019, offered right issue to existing shareholders, with the right to purchase one shares for every 70 shares held, at RM2 lower than the market price. Market price on the date was RM6. All offers were taken up. 8. Declared cash dividend to ordinary shareholders of RM0.50 per share on 15 March 2019, subject to approval at the forthcoming annual general meeting. 9. Paid preference dividend on 31 March 2019.
QUESTION 3 Daebak Berhad was formed on April 1, 2000. The company reported the following summarized Statement of Financial Position at April 1, 2018: Daebak Berhad Partial Statement of Financial Position as at 1 April 2018 RM Assets Cash 557,000 1,293,000 1,850,000 Other assets Total assets Liabilities and Equity Equity Ordinary share capital, 150,000 issued 9% Preference share capital, 70,000 issued Retained earnings 600,000 175,000 670,000 1,445,000 Liabilities Other liabilities Dividend payable Total liabilities and equity 365,000 40,000 1,850,000 The following transactions occurred during the year ended March 31, 2019 but have yet to be recorded: 1. On 2 April 2018, the company issued 9% RM100,000 par value bonds payable for RM96,149. The bonds pay interest on 31 December annually and will matures in five years. The annual market rate on the date of issue is 10%. 2. Paid dividends payable to shareholders on 1 May 2018. 3. The company issued a prospectus to the public to invite for subscription of 60,000 ordinary shares at a value of RM4.50 each on 15 July 2018. All shares were fully subscribed and payable in full upon application. The cost of share issue is RM11,000. 4. On 10 September 2018, the company paid interim dividend of RM63,000. 5. Issued bonus shares on 1 November 2018, at a ratio of one for every twenty shares held. Market value per share was RMS.50. The retained earnings account is utilised for this purpose. 6. Obtained a loan amounting RM45,000 from Awam Bank Berhad at 5% per year on 2 February 2019. 7. On 15 February 2019, offered right issue to existing shareholders, with the right to purchase one shares for every 70 shares held, at RM2 lower than the market price. Market price on the date was RM6. All offers were taken up. 8. Declared cash dividend to ordinary shareholders of RM0.50 per share on 15 March 2019, subject to approval at the forthcoming annual general meeting. 9. Paid preference dividend on 31 March 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Required:
a. Journalise the above transactions. Narrations are not required. Where no entries are
required, state your reason.
b. Prepare the statement of financial position (liabilities and equity sections only) of
Daebak Berhad as at 31 March, 2019.
Transcribed Image Text:QUESTION 3
Daebak Berhad was formed on April 1, 2000. The company reported the following
summarized Statement of Financial Position at April 1, 2018:
Daebak Berhad
Partial Statement of Financial Position as at 1 April 2018
RM
Assets
Cash
557,000
1,293,000
1,850,000
Other assets
Total assets
Liabilities and Equity
Equity
Ordinary share capital, 150,000 issued
9% Preference share capital, 70,000 issued
Retained earnings
600,000
175,000
670,000
1,445,000
Liabilities
Other liabilities
Dividend payable
Total liabilities and equity
365,000
40,000
1,850,000
The following transactions occurred during the year ended March 31, 2019 but have yet to be
recorded:
1. On 2 April 2018, the company issued 9% RM100,000 par value bonds payable for
RM96,149. The bonds pay interest on 31 December annually and will matures in five
years. The annual market rate on the date of issue is 10%.
2. Paid dividends payable to shareholders on 1 May 2018.
3. The company issued a prospectus to the public to invite for subscription of 60,000
ordinary shares at a value of RM4.50 each on 15 July 2018. All shares were fully
subscribed and payable in full upon application. The cost of share issue is RM11,000.
4. On 10 September 2018, the company paid interim dividend of RM63,000.
5. Issued bonus shares on 1 November 2018, at a ratio of one for every twenty shares
held. Market value per share was RM5.50. The retained earnings account is utilised
for this purpose.
6. Obtained a loan amounting RM45,000 from Awam Bank Berhad at 5% per year on 2
February 2019.
7. On 15 February 2019, offered right issue to existing shareholders, with the right to
purchase one shares for every 70 shares held, at RM2 lower than the market price.
Market price on the date was RM6. All offers were taken up.
8. Declared cash dividend to ordinary shareholders of RM0.50 per share on 15 March
2019, subject to approval at the forthcoming annual general meeting.
9. Paid preference dividend on 31 March 2019.
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