ASSIGNMENT 02 Question1 (15 marks: 27 minutes) On 1 January 20x0, the company was incorporated with an authorised share capital of 150 000 ordinary shares and 50 000 preference shares (fixed annual dividend of 10c/share). The post closing trial balance of Coral Limited as at December 20x2 after the provisional statement of profit or loss & other comprehensive income was drafted is shown. Coral Limited POST-CLOSING TRIAL BALANCE AS AT 31 DECEMBER 20x2 Details Fol. Debit Credit Ordinary share capital (100 000 shares @RI B1 100 000 00 cac share premium B2 B3 5 00000 43 000 00 40 000 00 Retained earnin Preference share capital (40 000 preference B4 shares @RI Each Land and buildings Plant and Machi Underwriting commission- Preference shares B7 Share issue ex Bank B5 B6 100 000 00 60 000 00 4 000 00 B8 B9 2 00000 22 00000 erenc Additional information The directors decided, with the necessary general meeting approval, to implement these decision on 1 January 20x3 in this order: 1) The a share capital must be converted to 150 000 ordinary shares no par value. 2) The preference shares are to be redeemed at a premium of 5c/share. 3) The redemption of the preference shares must be financed partly from the issue of 10 000 ordinary shares @R2/share and partly out of the current bank balance. 4) The ordinary share were offered to the public. The issue was underwritten in full by Down-Under Ltd for an underwriting commission of 6% The public subscribed for 8 000 shares. All the shares were allotted on J Share issue expenses amounted to R500. a- b. c. d. anuary 20x3