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Financial Accounting 1 Integrity Berhad redeemed all the redeemable preference shares at a premium of 8%. A total of 8,000,000 ordinary shares of RMI each
Financial Accounting 1
Integrity Berhad redeemed all the redeemable preference shares at a premium of 8%. A total of 8,000,000 ordinary shares of RMI each were issued at a premium of 9% to partly finance the redemption Integrity Berhad Statement of Financial Position as at 31 December 2019 RM1000 Non-current assets 52,650.00 Current assets 11,520,00 Bank 46,800.00 110.970,00 Ordinary shares of RMI each 30,600.00 4% redeemable preference shares of RM1 each 22,950.00 Retained profits 43.920.00 Current liabilities 13,500.00 110.970,00 Required: Compute the necessary workings to capture the redemption of preference shares out of profits and through the issue of new shares. (3 marks) (b) Prepare the relevant journal entries to record the transactions. (9 marks) Present the extract of Statement of Financial Position immediately after the redemption (5 marks) and issuance of shares. (d) Explain why a comparry may wish to issue new sharesStep by Step Solution
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