question 2

calculate Ltd was incorporated on 31 january 2020 with an authorised share capital as follows: 950000 ordinary shares (classA) 440000 10% preference shares *classB)

the following information in respect of shares is provided for the period ended 31 May 2020:

required: record the transactions in the general journal of Calculate Ltd for the period ended 31 May 2020. record dates and a brief narration for each journal entry. show all workings.

A motion was passed by the incorporators to take up the following: 200000 Ordinary shares at R1 each; and 4000010% Preference shares at R10 each. Incorporators paid in all monies due for the shares taken on 1 February 2 An underwriter's agreement was concluded to offer the following; 350000 Ordinary shares at R1 each; and 4500010% Preference shares at R10 each. Underwriter's commission was agreed at 7%. The underwriter's account settled on 15 May 2020 Applications for shares on the final date for applications were received 285000 Ordinary shares at R1 each; and 3800010% Preference shares at R10 each Allotment of shares to all applicants and to the underwriter was comple The underwriter's account was settled as required by the underwriter's Share issue costs of R17 500 were paid