Tobias Limited received its registration certificate on 10 February 2020. The article 2 ofthe Memorandum of incorporation provides for an authorized share capital ofR4 500 000 consisting of 3 000 000 ordinary shares and 1500 000, 8% non-redeemable preference shares. The board decided on a year end of 30 September.During March 2020, the directors entered the following transactions:• 5 March: 100 00o shares were issued to the company promoters and foundersfor R1 each.• 12 March: The public was invited to apply for 600 000 ordinary shares for R1.20each and 200 000 preference shares for R1. The full issue price was payable withapplications that closed on 25 April 2020.The entire issue was underwritten by FNB Securities Brokers Limited for a commissionof 2% of the issue price. The company promoters and founders paid for their shares on8 April 2020.The share applications from the public investors were as follows:1 500 000 ordinary shares• 150 000 preference shares.On 30 April 2020, the board of directors decided to:• allot the preference shares in accordance with the applications received.• allot all applications for ordinary shares in the ratio of 2 shares for every fiveapplied for.• Refund all excess applications amounts in respect of ordinary shares on 2 May2020.• Settle with the underwriters on 5 May 2020 and set off the share issue costsagainst the proceeds of share issue.The profits for the financial reporting period ended 30 September 2020 amounted toR150 000 (after taxation). This was a commendable performance given the difficultCOVID-19 business restrictions. The total dividends of R20 000 were declared by theboard of directors on 28 September 2020. Dividends are payable on 15 October 2020 tothe benefit of shareholders on record on 7 October 2020. None of the shareholders wereexempt from the 20% withholding tax on dividends.You are required to:(a) Prepare general journal entries to record the above transactions in the books ofTobias Limited. Journal narrations are not required.(b) Prepare the relevant extracts of the equity section of the statement of financialposition of Tobias Limited as of 30 September 2020.

A journal entry is a way for a corporation to record all of its individual financial transactions in…

Answered: Tobias Limited received its…

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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Please answer i, ii ,iii. Thanks
Hammond Manufacturing Inc. was legally incorporated on January 2, 2023. Its articles of incorporation granted it the right to issue an unlimited number of common shares and 100,000 shares of $14.40 non-cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations: 2023 Jan. Mar. Dec. 12 Issued 40,000 common shares at $4.80 each. 20 Issued 6,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $36,000. 31 Issued 80,000 common shares in exchange for land, building, and equipment, which have fair market values of $360,000, $480,000, and $48,000, respectively. 4 Purchased equipment at a cost of $8,160 cash. This was thought to be a special bargain price. It was felt that at least $10,800 would normally have had to be paid to acquire this equipment. 31 During 2023, the company incurred a loss of $96,000. The Income Summary account was closed. 2024…
The following accounts are found in the trial balance of Dawn Corporation as December 31, 2019. Authorized Ordinary share capital, P 100 par P1,000,000; Unissued Ordinary share capital P300,000; Subscribed Ordinary share P200,000; Ordinary share subscription receivable P100,000; Ordinary share premium P70,000. The total number of shares issued is Using data in number 1, the total number of shares still available for subscription is
Prepare Jornal Entry and Ledger account. Attached Question and format of ledger
The Banco de Plata was organized on April1, 2018 and is authorized to issue 250,000 shares of Ordinary Share Capital. Thereafter, 62,500 shares were issued at P 25 per share. Prepare the journal entries to record the authorization of the share capital and the issuance of the 62,500 shares using the memorandum entry method and the journal entry method under of the following independent cases: a) Each ordinary share has a par value of P 20 b) Each ordinary share has a stated value of P 15 c) Each ordinary share have a no par value and no stated value
Goofy Ltd was incorporated on 1 July 2016 and issued a prospectus inviting applications for 500,000 ordinary shares at an issue price of $10. The shares are payable are follows: • $5 payable on application • $3 payable on allotment • $2 payable on call to be made 30th September 2016 The transactions for the period were as follows: 31August2016: Applications were received for 580,000shares. 3 September 2016: Applications for 80,000 were rejected by the directors and the application money was returned to the shareholders concerned. 4 September 2016: The Company allotted 500,000 shares to the remaining applicants. 25 September 2016: All the allotment money was received. 30 September 2016: The call was made on the shares, payable by 31 October 2016. 31October2016:Call money was received from the shareholders of only 460,000shares. 31 December 2016: The remaining 40,000 shares were forfeited. The forfeited shares were offered to an investment company at a price of $8.50 per share paid to$10…
What is the journal entry for the authorization to issue shares under memorandum entry method?
At the beginning of the current year, Salonga Company was organized with an authorization of 1,000,000 ordinary shares with a par value of P10 per share. During the current year, the entity had the following share capital transactions: February 14 – Issued 500,000 shares at P20 per share March 10 – Reacquired 50,000 treasury shares at P15 per share August 25 – Reissued 30,000 treasury shares at P18 per share The entity used the cost method to record the reacquisition and reissuance of the treasury shares. What total amount should be reported as share premium at year-end? a. P5,240,000 b. P5,090,000 c. P5,000,000 d. P5,400,000
The articles of incorporation for Peahen Corp. authorize the company to issue 100,000 $6 preferred shares and 500,000 common shares. During first year of operations, Peahen Corp. completed the following selected transactions: (Click the icon to view the transactions.) Required 1. Record the transactions in the general journal. 2. Prepare the shareholders' equity section of the Peahen Corp. balance sheet at November 30, 2020. Requirement 1. Record the transactions in the journal. (Record debits first, then credits. Explanations are not required.) Dec. 4, 2019: Issued 6,000 common shares to the consultants who formed the corporation, receiving cash of $180,000. Date Dec. Journal Entry Accounts Debit Credit
Aalwyn Ltd was incorporated with authorized share capital consisting of 800 000 10% preference shares of $ 2 each and 2 000 000 ordinary shares of N$1.50c each. 01 October 2019: The subscribers to the memorandum took and paid for 100 000 ordinary shares at par. During the year, 80% of the remaining ordinary shares and 500 000 preference shares were offered to the public as follows:  The ordinary shares were offered at a premium of 95c per share; and  The preference shares were offered at N$ 5.  01 March 2020: The offer for the subscription of shares opened to the public.  25 March 2020: The offer to the public was closed.  15 April 2020: Allotment of shares offered to public took place and all transactions with the underwriter were also concluded on this date. The issue is being underwritten for a commission of 8%. A total of 400 000 preference shares and 1 700 000 ordinary shares were applied for and the available shares were allotted and the necessary refunds made. The terms of…
Will Bhd closes its accounts on 31 December annually. On 2 January 2020, the company offered 5,000,000 ordinary shares at RM1 per share to the public and 3,000,000 preference shares at RM2 per share to selected investors. Full payment of both shares must be made upon application. On 31 January 2020 (closing date of application), the company received RM6,000,000 for ordinary shares application and RM6,000,000 for preference shares application. On 28 February 2020, the surplus application money was fully refunded.
1. A company received 3,000, P10 par ordinary shares from one of its shareholders. In the same year the company reissued the shares at P15 per share. If the fair value of the shares was P13 at the date of donation, what amount was credited to the donated capital account when the shares were reissued? 2. In 2021, a company issued 6% bonds with a maturity value of P40,000, together with 1,000 shares of its P10 par value ordinary share, for a combined cash amount of P150,000. The market value of a company’s share on that date cannot be ascertained. If the bonds were issued separately, they would have been sold for P35,000 on an 8% yield to maturity basis. Determine the increase in share premium as a result of this transaction.3. In 2021, a company issued 1,000,000 no-par value ordinary shares for P1.15 per share. The stated value of the shares is P1. Also, during the year, some potential shareholders of the company subscribed for 800,000 of the same ordinary shares for P1.20 per share…

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