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QUESTION FOUR [15] Mark Limited was incorporated on 1 January 2019. Authorised share capital was 1 000 000 ordinary shares, and 500 000 8% preference
QUESTION FOUR [15] Mark Limited was incorporated on 1 January 2019. Authorised share capital was 1 000 000 ordinary shares, and 500 000 8% preference shares By 31 July 2019. Mark Limited had the following in issue 500 000 ordinary shares R500 000 ordinary share capital, and 250 000 8% preference shares..... R500 000 preference share capital All the above have been recorded correctly. During the period 1 January 2020 to 30 June 2020 the following issue of shares too place. 2020 250 000 ordinary shares were advertised and offered to the public at a 17 Jan price of R1,00 each. 50 000 8% preference shares were also offered to the public at R2,00 each. The offer expires on 30 April 2021. These offe were underwritten by Badge Finance for a commission of 4,5% 30 April Applications were received from the public for 230 000 ordinary shares and 49 000 8% preference shares. 20 May Shares were allotted to the public as well as the Underwriter. 31 May The account with the Underwriter was settled. 2 June Share issue expenses of R12 500 were paid. Required: Record the above transactions in the general journal relating to the above issues of both the ordinary shares and preference shares. Narrations are not required. (15)
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