(a) The issued share capital of Alpha, a limited liability company, is as follows: K

Authorised shares Called-up capital.

Issued capital Paid-up capital. Par Value

Ordinary shares of 10n each

1,000,000

1

8% Redeemable preference shares of 50n each 500,000

In the year ended 31 October 2002, the company has paid the preference dividend for the year and an interim dividend of 2n per share on the ordinary shares. A final ordinary dividend of 3n per share was proposed, before the reporting date.

Calculate the recognised dividends in the equity section of the statement of financial position at 31 October 2002?

(b) A company made an issue for cash of 1,000,000 50n shares at a premium of 30n per share. Make journal entries to records the correct issue of shares?

(c) At 31 December 2001 the capital structure of a company was as follows: K

Ordinary share capital

100,000 shares of 50n each 50,000 Share premium account 180,000

During 2002 the company made a bonus issue of 1 share for every 2 held, using the share premium account for the purpose, and later issued for cash another 60,000 shares at 80n per share. Calculate the company's capital structure at 31 December 2002?

(d) At 30 June 2002 a company had K1m 8% loan notes in issue, interest being paid half- yearly on 30 June and 31 December.

On 30 September 2002 the company redeemed K250, 000 of these loan notes at par, paying interest due to that date.

On 1 April 2003 the company issued K500, 000 7% loan notes, interest payable half-yearly on 31 March and 30 September.

Calculate the figure should appear in the company's statement of comprehensive income for interest payable in the year ended 30 June 2003?

(e) A limited liability company issued 50,000 ordinary shares of 25n each at a premium 50n per share. The cash received was correctly recorded but the full amount was credited to the ordinary share capital account. Make the journal entries needed to correct the error?