Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4 The balances in the books of Crystal Sand Sdn. Bhd. as at 1 June 2019 were as below: RM Ordinary shares at RM0.50

image text in transcribed
Question 4 The balances in the books of Crystal Sand Sdn. Bhd. as at 1 June 2019 were as below: RM Ordinary shares at RM0.50 each 1,600,000 5% Preference shares at RM1.00 each 1,000,000 Share premium 100,000 Retained earnings 572,000 The following transactions took place during the month of June 2019: 1. The company made a rights issue of 1 share for every 5 shares held at RM1.80 per share. All shareholders exercised their rights. 2. A final dividend of RM0.10 per share was declared to ordinary shareholders. This dividend remains unpaid as year end. 3. The directors made full payment on preference shares dividend. 4. The company made an issuance of 600,000 10% debentures at par value. Required For each of the situations from 1 to 4 above, prepare the journal entries (with narratives) to record the transactions. You are required to consider each situation independently. (Use the same capital structure as at 1 June 2019 as shown above to each situation)

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

Intermediate Accounting 2007 FASB Update Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

12th Edition

0470128763, 978-0470128763

More Books

Students also viewed these Accounting questions

Question

Understand corporate and HRM strategy.

Answered: 1 week ago