Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Investor trade ( pty ) ltd issued 1 6 0 0 ordinary shares to Mr Chang at a market price of R 1 6 0

Investor trade (pty) ltd issued 1600 ordinary shares to Mr Chang at a market price of R160 per share on 1 january 2023.
During the current 2023 financial year end, investor trade (pty) ltd anniunced the following changes to their capital structure.
1 May 2023: capitalisation issue in the ratio of one share for every two shares held on 30 April 2023.
1 july 2023: share slipt of the current 5000 shares in issue , with a value of R120 each , slipt into 15000 shares valued at R40 each.
None of the transactions have been accounted for.
Prepare all the general journal entries relating to investor trade (pty) ltd for the year ended 31 december 2023.
Where no journal entry is required, provide supporting reasons to justify i.e specifically address the effect that the capitalisation issue and share slipt will have on the number of ordinary shares held by mr chang.

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

Introduction To Management Accounting Chapters 1 To 14

Authors: Charles T Horngren, Gary L Sundem, William O Stratton, Dave Burgstahler, Jeff Schatzberg

15th Edition

0136102778, 9780136102779

More Books

Students also viewed these Accounting questions