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help please!! Great Company is authorised to issue 20.000 shares of Rp50.000 par value, 10% preference shares and 125.000 shares of Rp5.000 par value ordinary
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Great Company is authorised to issue 20.000 shares of Rp50.000 par value, 10% preference shares and 125.000 shares of Rp5.000 par value ordinary shares. On January 1,2020, the ledger contained the following equity balances: Share Capital - Preference (10.000 shares) Share Premium - Preference Share Capital - Ordinary (70.000 shares Share Premium - Ordinary Retained Earnings Rp500.000.000 75.000.000 350.000.000 700.000.000 300.000.000 Feb. During 2020, the following transactions occurred: Issued 2.000 preference shares for land having a fair value of Rp120.000.000. Mar. Issued 1.000 preference shares for cash at Rp65.000 per share. July. Issued 16.000 ordinary shares for cash at Rp7.000 per share. Sept. Issued 400 preference shares for a patent. The asking price of the patent was Rp30.000.000. The market price for the preference shares was Rp 70.000. Oct. Purchased 10.000 ordinary shares for cash at Rp 4.000 per share. Nov. Sold 5.000 treasury ordinary share for cash at 3.800 per share. Dec. 1 Issued 8.000 ordinary shares for cash at Rp7.500 per share. 1 Dec. 31 Net Income for the year was Rp260.000.000. No dividends were declared. Required: a. Journalise the transactions and the closing entry for net income. b. Enter the beginning balances in the accounts and post the journal entries to the equity accounts c. Prepare an equity section at December 31, 2020 Step by Step Solution
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