Ekon Limited was incorporated on 1 January 2022 with an authorised share capital comprising 100 000 no par value ordinary shares. On 31 March 2022, the company purchased the following assets from Pawn Shops:

Equipment = R10 000

Delivery Vehicle = R33 000

Inventory =R35 000

These purchases were paid for with the issue of 30 000 no par value ordinary shares. On 30 June 2022, the company offered a further 50 000 ordinary no par value shares to the public at R3 per share. On 31 July 2022, applications and the necessary funds were received for 55 000 shares and the directors decided to issue the shares available and return all excess applications. Commission of 2% on total issue price was paid to the underwriters.

You are required to:

Prepare journal entries in the general journal of Ekon Limited to record the above transactions (cash transactions included). Journal narrations are required. 

Answer rating: 100% (QA)

Journal Entries are as follows March 31 2022 Purchase of assets from Pawn Shops Debit Equipment Ac R... View the full answer