Q.No. 6 RBC SAOG purchased a land from ABC estates in exchange for 100,000 shares of OMR 1 par value common stock. The land had a market value of OMR 120,000. Give necessary journal entries Q.No. 1 A company is formed on 1 January 2015 by issuing 4.000.000, RO 0.500 cquity shares at a price of RO 0.500 cach. Show the necessary entries to record this transaction, and what will appear in the Statement of Financial Position under the heading equity. The same company issued more shares on 30 June 2017. They issued another 2,000,000, RO 0.500 shares at a price of RO 0.800 each. Show the necessary entries to record this transaction, and what will now appear in the Statement of Financial Position. Assume Bank balance to be RO 2,000,000 before such issue. Q. No. 2 A company was formed on 1 March 2018 with an authorized capital of OMR 5 million divided into common stock of OMR 0.600 each. The company came up with an initial Public Offer (IPO) by issuing 2,000,000 equity shares at OMR 0.600 each. Pass necessary journal entries and comments in the considering the following situation separately: a) If the shares are issued at par. b) If the shares are issued at a premium of OMR 0.300 c) If IPO is fully subscribed d) If IPO is oversubscribed by 3 times and the company rejected 1/3rd applications and for remaining made a pro-rata allotment of 2 : 1 and refunded the excess amount e) If IPO is subscribed upto 60% Q. No. 3 Company ABC has in issue 800,000 RO 1 equity shares with a current market value of RO 1.5 each. It also has a balance of RO 50,000 in its share premium account, RO 60,000 in its bank account and Heavy equipment of OMR 790,000 before such issue. It offers a rights issue of 1 for 4 shares at an offer price of RO 1.200. The offer is only taken by 80% of Shareholders. Journalize the given entries show the necessary calculations and also the abstract of Balance sheet after such issue. Q.No. 4 XYZ SAOG issues 5,000,000 6% Redeemable preference stock with a par value of OMRI at a premium issue price of OMR 1.100 on 1st Jan 2019. Give journal entry and show statement of financial position assuming that the company has equity share capital of OMR 1,400,000, Land and Building OMR 500,000 and Heavy equipment of OMR 900,000 Q.No. 5 ABC SAOG has in issue 10 million, RO 1 cquity share. The company decided to make a bonus issue in the ratio of 2 for 10 shares held. Prior to issue of bonus the company had following balance in its reserves and surplus: Share premium RO 1,000,000, General Reserve RO 1,000,000, Retained earnings RO 5 million Revaluation surplus RO 2,500,000. The company has to use in priority share premium. 50% of General reserve and 10% of Retained camnings can be used for bonus shares. Journalize the entries and show its working and effect on items of Statement of Financial Position. Q.No. 6 RBC SAOG purchased a land from ABC estates in exchange for 100,000 shares of OMR 1 par value common stock. The land had a market value of OMR 120,000. Give necessary journal entries Q.No. 1 A company is formed on 1 January 2015 by issuing 4.000.000, RO 0.500 cquity shares at a price of RO 0.500 cach. Show the necessary entries to record this transaction, and what will appear in the Statement of Financial Position under the heading equity. The same company issued more shares on 30 June 2017. They issued another 2,000,000, RO 0.500 shares at a price of RO 0.800 each. Show the necessary entries to record this transaction, and what will now appear in the Statement of Financial Position. Assume Bank balance to be RO 2,000,000 before such issue. Q. No. 2 A company was formed on 1 March 2018 with an authorized capital of OMR 5 million divided into common stock of OMR 0.600 each. The company came up with an initial Public Offer (IPO) by issuing 2,000,000 equity shares at OMR 0.600 each. Pass necessary journal entries and comments in the considering the following situation separately: a) If the shares are issued at par. b) If the shares are issued at a premium of OMR 0.300 c) If IPO is fully subscribed d) If IPO is oversubscribed by 3 times and the company rejected 1/3rd applications and for remaining made a pro-rata allotment of 2 : 1 and refunded the excess amount e) If IPO is subscribed upto 60% Q. No. 3 Company ABC has in issue 800,000 RO 1 equity shares with a current market value of RO 1.5 each. It also has a balance of RO 50,000 in its share premium account, RO 60,000 in its bank account and Heavy equipment of OMR 790,000 before such issue. It offers a rights issue of 1 for 4 shares at an offer price of RO 1.200. The offer is only taken by 80% of Shareholders. Journalize the given entries show the necessary calculations and also the abstract of Balance sheet after such issue. Q.No. 4 XYZ SAOG issues 5,000,000 6% Redeemable preference stock with a par value of OMRI at a premium issue price of OMR 1.100 on 1st Jan 2019. Give journal entry and show statement of financial position assuming that the company has equity share capital of OMR 1,400,000, Land and Building OMR 500,000 and Heavy equipment of OMR 900,000 Q.No. 5 ABC SAOG has in issue 10 million, RO 1 cquity share. The company decided to make a bonus issue in the ratio of 2 for 10 shares held. Prior to issue of bonus the company had following balance in its reserves and surplus: Share premium RO 1,000,000, General Reserve RO 1,000,000, Retained earnings RO 5 million Revaluation surplus RO 2,500,000. The company has to use in priority share premium. 50% of General reserve and 10% of Retained camnings can be used for bonus shares. Journalize the entries and show its working and effect on items of Statement of Financial Position