Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 shares

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

QS 9000 Handbook A Guide To Registration And Audit

Authors: Jayanta Bandyopadhyay

1st Edition

157444011X, 978-1574440119

More Books

Students also viewed these Accounting questions