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QUESTION FOUR [ 2 5 ] Success Limited registered with the CIPC and the Certificate of Commencement was issued on 1 July 2 0 2
QUESTION FOUR
Success Limited registered with the CIPC and the Certificate of Commencement was issued on July Authorised share capital was granted as follows:
Ordinary shares of R each, and
Preference shares of R each
The following transactions took place for the year ended June
tabletable JulytableThe Founders resolved to purchase Ordinary shares at R each and Preference shares at R each. The share certificates for the Ordinaryshares and the Preference Shares were issued to the Founders as agreed. July,Upon receipt of the share certificates, the Founders paid in full as resolved. Sept,tableThe Company offered Ordinary shares at R each to the public. Theclosing date for applications was December Dec,tableApplication for ordinary shares were received from the public with theirapplication monies and the regulatory application documents.
tablecontinuedDec,Shares were allotted to successful applicants.table JantableUnsuccessful applicants were refunded their application monies. The companypaid R in respect of share issue expenses. May,tableOrdinary dividends of cents per share were declared by the Directors afterapproval by the shareholders at the annual general meeting. Dividends werepayable on June June,Dividends due to shareholders were paid. June,tableRecord the income tax expense that was calculated at R for thecurrent financial year. Provisional tax payments have not been made. June,tableRecord the closing entry at end of the financial year for the Share issueexpenses of R
Required:
Prepare general journal entries to record all the relevant transactions regarding the issue of shares during the current financial year ended June Include general journal entries for the declaration and payment of dividends, the income tax expense, the payment of dividends as approved, and the yearend closing entry for the share issue expenses.
NB: You are required to also record the date and a short narration for each transaction
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