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The equity of Pango Pango Oil Extraction and Refining Company Limited at 30 June 2023 consisted of the following. 400 000 ordinary 'A' shares issued at $2.00, fully paid 300 000 ordinary 'B' shares issued at $2.00, called to $1.20 50 000 6% preference shares issued at $800 000 360 000

The equity of Pango Pango Oil Extraction and Refining Company Limited at 30 June 2023 consisted of the following. 400 000 ordinary 'A' shares issued at $2.00, fully paid 300 000 ordinary 'B' shares issued at $2.00, called to $1.20 50 000 6% preference shares issued at $800 000 360 000

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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2023 Sep. 15 Nov. 1 The preference dividend and the final ordinary dividend of 16c per fully paid share, both declared on 30 June 2023, were paid. The directors do not need any other party to authorise the payment of dividends. 2024 Jan. 10 A 1-for-5 renounceable rights offer was made to ordinary 'A' shareholders at an issue price of $1.90 per share. The expiry date on the offer was 30 November 2023. The issue was underwritten at a commission of $10 000. Nov. 30 Holders of 380 000 shares accepted the rights offer, paying the required price per share, with the renounced rights being taken up by the underwriter. Ordinary 'A' shares were duly issued. Dec. 10 Money due from the underwriter was received. The directors transferred $35 000 from retained earnings to a replacement reserve. Feb. 28 As a result of options being exercised, 70 000 ordinary 'C' shares were issued. Unexercised options lapsed and an option reserve was created. Apr. 30 The directors made a call on the ordinary 'B' shares for 80c per share. Call money was payable by 31 May. May 31 All call money was received except for that due on 1000 shares. Jun. 18 Jun. 30 Jun. 30 Shares on which the final call was unpaid were forfeited and a forfeited share reserve was set up. Profit and comprehensive income for the year was $1 580 000. The directors declared a 10c per share final dividend on all fully paid 'A' and 'B' ordinary shares, 5c per share on 'C' shares and the dividend on preference shares. All dividends to be paid on 15 September 2024. MOSQUE 2. Prepare the equity section of the statement of financial position as at 30 June 2024. 4.19 Dividends OF Tou POTER
Transcribed Image Text:2023 Sep. 15 Nov. 1 The preference dividend and the final ordinary dividend of 16c per fully paid share, both declared on 30 June 2023, were paid. The directors do not need any other party to authorise the payment of dividends. 2024 Jan. 10 A 1-for-5 renounceable rights offer was made to ordinary 'A' shareholders at an issue price of $1.90 per share. The expiry date on the offer was 30 November 2023. The issue was underwritten at a commission of $10 000. Nov. 30 Holders of 380 000 shares accepted the rights offer, paying the required price per share, with the renounced rights being taken up by the underwriter. Ordinary 'A' shares were duly issued. Dec. 10 Money due from the underwriter was received. The directors transferred $35 000 from retained earnings to a replacement reserve. Feb. 28 As a result of options being exercised, 70 000 ordinary 'C' shares were issued. Unexercised options lapsed and an option reserve was created. Apr. 30 The directors made a call on the ordinary 'B' shares for 80c per share. Call money was payable by 31 May. May 31 All call money was received except for that due on 1000 shares. Jun. 18 Jun. 30 Jun. 30 Shares on which the final call was unpaid were forfeited and a forfeited share reserve was set up. Profit and comprehensive income for the year was $1 580 000. The directors declared a 10c per share final dividend on all fully paid 'A' and 'B' ordinary shares, 5c per share on 'C' shares and the dividend on preference shares. All dividends to be paid on 15 September 2024. MOSQUE 2. Prepare the equity section of the statement of financial position as at 30 June 2024. 4.19 Dividends OF Tou POTER
14.18 Shares, options, dividends and reserve transfers LO6, 8, 9 The equity of Pango Pango Oil Extraction and Refining Company Limited at 30 June 2023 consisted of the following. 400 000 ordinary 'A' shares issued at $2.00, fully paid 300 000 ordinary 'B' shares issued at $2.00, called to $1.20 50 000 6% preference shares issued at $1.50, fully paid Share options issued at 32c, fully paid Retained earnings $800 000 360 000 75 000 24 000 318 000 The options were exercisable before 28 February 2024. Each option entitled the holder to acquire two ordinary 'C' shares at $1.80 per share, the amount payable on notification to exercise the option. Required 1. Prepare general journal entries to record the follow- ing transactions, which occurred during the year ended 30 June 2024.
Transcribed Image Text:14.18 Shares, options, dividends and reserve transfers LO6, 8, 9 The equity of Pango Pango Oil Extraction and Refining Company Limited at 30 June 2023 consisted of the following. 400 000 ordinary 'A' shares issued at $2.00, fully paid 300 000 ordinary 'B' shares issued at $2.00, called to $1.20 50 000 6% preference shares issued at $1.50, fully paid Share options issued at 32c, fully paid Retained earnings $800 000 360 000 75 000 24 000 318 000 The options were exercisable before 28 February 2024. Each option entitled the holder to acquire two ordinary 'C' shares at $1.80 per share, the amount payable on notification to exercise the option. Required 1. Prepare general journal entries to record the follow- ing transactions, which occurred during the year ended 30 June 2024.
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