Question 4 and 5

Sibukho Ltd was formed during 2005 and its financial year end is on the last day of August. The company had the following share capital structure on 01 2018 Authorised share capital 400 000 ordinary shares 150 000 8% preference shares Issued share capital .200 000 ordinary shares 150 000 8% RI preference shares Additional information Sibukho Ltd offered 150 000 ordinary shares of R2 each on 15 December 2018 to the public. These shares were underwritten City bank at 5% per share. On 15 January 2019, 145 000 applications for 30 FAC1601/101/3/2019 ASSIGNMENT 02- SECOND SEMESTER (continued) shares were received by Sibukho Ltd. The shares were allotted for applications received on 31 January 2019 and all necessary transactions were finalised. The directors of Sibukho Ltd declared an ordinary dividend of 10 cents for every ordinary share on 31 August 2019. QUESTION 4 Which of the following journals represent the correct journal entry for the final settlement to City bank on 31 January 2019? 15 000 Bank 15 000 2. Underwriters commission 15 000 15 000 City Bank 3. City Bank 10 000 10 000 Bank 4. City Bank 5 000 Bank 5 000 QUESTION 5 Which of the following journals represent the correct journal entries for total dividends declared by Sibukho Ltd on 31 August 2019? 1. Preference dividends Ordinary dividends 12 000 35 000 Dividends 47 000 2. Ordinary dividends Dividends 35 000 35 000 3. Ordinary dividends 28 750 26 750 Dividends payable 12 000 28 750 4. Preference dividends Ordinary dividends DividendsP 40 750