6 Exercise 13.19 , Google Chrome 7 i edugen.wileyplus.com/edugen/shaired/assignment/test/qprint.uni Print by: WONG XIAU CHING 6527577 ACCY201 - AugZOZO Subang / Accy201 - 2 *Exercise 13.19 Chilli Crab Ltd, a company whose principal interests were in the manufacture of ne leather shoes and hand-bags, was formed on 1 January 2017. Prior to the 2020 period, Chilli Crab Ltd had issued 109,330 ordinary shares: 0 94,840 $31 shares were issued for cash on 1 January 2017 I 4,680 shares were exchanged on 1 February 2013 for a patent that had a fair value at date of exchange of $215,280 I 9,810 shares were issued on 13 November 2019 for $45 per share. At 1 January 2020, Chilli Crab Ltd had a balance in its retained earnings account of $813,300, while the general reserve and the asset revaluation surplus had balances of $215,280 and $170,210 respectively. The purpose of the general reserve is to reect the need for the company to regularly replace certain of the shoe-making machinery to reflect technological changes. During the 2020 nancial year, the following transactions occurred: Feb. 18 Chilli Crab Ltd paid a $24,120 dividend that had been declared in December 2019. Liabilities for dividends are recognised when they are declared by the company. May 10 9,070 shares at $59 per share were offered to the general public. These were fully subscribed and issued on 20 June 2020. On the same date, another 14,410 shares were placed with major investors at $59 per share. June 25 The company paid a $21,560 interim dividend. 30 The company revalued land by $29,420, increasing the asset revaluation surplus by $19,420 and the deferred tax liability by $10,000. July 1 The company early adopted AASB 4/IFRS 4 in relation to insurance. The transitional liability on initial adoption was $56,510 more than the liability recognised under the previous accounting standard. This amount was recognised in other comprehensive income and accumulated in retained earnings. 22 Chilli Crab Ltd repurchased 5,480 shares on the open market for $51 per share. The repurchase was accounted for by writing down share capital and retained earnings by an equal amount. Nov. 19 Chilli Crab Ltd declared a 1-for-10 bonus issue to shareholders on record at 1 October 2020. The whole of the general reserve was used to create this bonus issue. Dec. 1 The company issued 107,400 options at 19 cents each, each option entitling the holder to acquire an ordinary share in Chilli Crab Ltd at a price of $65 per share, the options to be exercised by 31 December 2021. No options had been exercised by 31 December 2020. 31 Chilli Crab Ltd calculated that its prot for the 2020 year was $152,300. It declared a $28,610 nal dividend, transferred $37,490 to the general reserve, and transferred $32,800 from the asset revaluation surplus to retained earnings. Share issue costs amount to 10% of the worth of any share issue. _ 77 , 3:10PM ,0 Type here to search " EM 9,27,2020 U Your answer is correct. Prepare the general journal entries to record the above transactions. (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Chilli Crab Ltd General journal entries Account and explanaon Debit Credit d1\" h . . 35130 (Application monies received during MayJune 2020) .1 June 2- . ash 13o (Transfer on issue of shares) % Lhare ca-ital 130 (Issue of Shara) ./ ash 190 (Placement of shares) .1 38532 I (Share issue costs) 25 Dividend paid 21560 Cash 21560 (Interim dividend paid) 30 Land 129420 Deferred tax liability 10000 Asset revaluation surplus 19420 July 1 Early adoption adjustment 156510 (Provision for insurance (56510) (Adjustment on early adoption of AASB 4) M- 22 Share capital 139740 V Repurchase of shares 139740 Tcash 1 1279480 November 19 General reserve 1215280 Share capital 1215280 (Bonus issue of shares) Share capital 21528 Cash 21528 (Share issue costs) December 1 Cash 20406 Options 20406 (Issue of options) 31 Dividend declared 28610 [Dividend payable) (28610) (Final dividend)[Transfer to general reserve) V 37490 General reserve 37490 (Transfer between reserves) Asset revaluation surplus 32800 Transfer from asset revaluation surplus 7 732800 (Transfer between reserves) Profit or loss summary 152300 Transfer from asset revaluation surplus 32800 Retained earnings 98810 Early adoption adjustment 156510 TRepurchase of shares 139740 Dividend declared 128610 Transfer to general reserve 137490 Dividend paid 21560 (Closing entry)V ('3) Prepare the statement of changes in equity for Chilli Crab Ltd for the year ended 31 December 2020. Chilli Crab Ltd Statement of changes in equity for the year ended 31 December 2020 Share capital Balance at 1 January 2020 v $ 3596770 Share issues V Repurchase of shares V Bonus issue of shares V Balance at 31 December 2021 V $ Retained earnings Balance at 1 January 2020 V $ Prot for the period V Transfer from asset revaluation surplus V Dividends paid and provided V Early adoption of AASB 4 Repurchase of shares V Transfer to general reserve V Balance at 31 December 2021 V Asset revaluation surplus Balance at 1 January 2020 V 5 Increase - revaluation of land V Transfer to retained earnings V Balance at 31 December 2021 V General reserve Balance at 1 January 2020 V Bonus issue of shares V Transfer from retained earnings V Balance at 31 December 2021 VOptions Balance at 1 January 2020 V $ Options issued Balance at 31 December 2021 $ Chilli Crab Ltd Statement of financial position (extract) Share capital $ Options Asset revaluation surplus v General reserve Retained earnings V