Question
Below is an extract of the Statement of Financial Position of Butterfly Berhad as at 30 June 2019. Butterfly Berhad Statement of Financial Position as
Below is an extract of the Statement of Financial Position of Butterfly Berhad as at 30 June 2019.
Butterfly Berhad
Statement of Financial Position as at 30 June 2019 (extract)
Shareholders Equity
Authorised share capital
10,000,000 ordinary shares of RM2.00 each 20,000,000
6,000,000 7% preference shares of RM1.00 each 6,000,000
26,000,000
Issued and fully paid-up capital
5,000,000 Ordinary Shares of RM2.00 each 10,000,000
5,000,000 7% Preference Shares of RM1.00 each 5,000,000
15,000,000
Long-term liabilities
8% Debentures 13,000,000
28,000,000
On 1 July 2019, the company invited the public to subscribe for its remaining Preference Shares payable in full on application and 2,000,000 ordinary shares of RM2 each. Terms for payment for ordinary shares were:
Application 60 Sen
Allotment 60 Sen
First Call 50 Sen
Second Call 30 Sen
On 30 August 2019, applications for 800,000 Preference Shares and 3,500,000 Ordinary Shares were received. The directors rejected applications for 500,000 ordinary shares and allotted 2 shares for every 3 applied for among the remaining applicants. The surplus application money received was applied to the amounts due on the Allotment.
All monies due on allotment and first call were received. However, a shareholder, Azizi, who had been allotted 1% of the shares offered, paid the second call together with the first call; while, Lina who was allotted 1.5% of the shares offered, failed to pay on the due date the second call.
Required:
Prepare the journal entries to record the above transactions.
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