Zermatt Holdings Ltd (ZHL) is a public company and was established on the 1st July 20X1. The company decided to go to the public for its first share issue and the prospectus was released on the 2nd July 20X1. Applications were sought for 10,000,000 ordinary shares of $1.00 each payable in full on application on the 31st August 20X1. The offer was popular and applications for 12,520,000 shares were received together with the required monies. The share issue was made on 1st September 20X1 and shares issued in proportion to the applications and excess monies were returned to the applicants. On the 21st October 20X1 ZHL paid Intext Share Registry Ltd $128,000 for services it provided in respect of the ordinary share issue. On the 1st November 20X1 ZHL undertook a private placement of 25,000 preference shares. Each share is issued at $25.00 and receives an annual return of 8% payable every 6 months on the last day of April and October each year. The preference shares are redeemable at the companys discretion and dividends are paid out of profits. Full monies were received on the day of issue. For the year ended 30th June 20X2 a profit of $823,000 was recorded after all necessary transactions were recorded against it and this entire amount was retained by the company.

According to the above information, we can get the accounting general journal

ZHL is going well and is looking to acquire another business. To do so it decides to raise some further capital by offering its ordinary shareholders a non-renounceable share rights issue. This decision is made on 1st August 20X2. The offer is 1 ordinary share for every 10 ordinary shares held and payable at 90% of the share price on the day of the announcement. The company prepares all the necessary documentation and makes the announcement on the 31st August 20X2. Shareholders who decide to take up the offer must do so by the 30th September 20X2 and pay their money on that date. By the required date 80% of shareholders take up the offer and pay the necessary money.

Due to the company performing well it decided to issue an interim dividend to its ordinary shareholders. On the 15th February 20X3 it declared and paid the interim dividend at 3 cents per share.

At the final Directors Meeting of ZHL for the year held on 16th June 20X3 it was determined that a final dividend on ordinary shares of 4 cents per share will be paid. The final dividend needs to be approved and declared at the annual general meeting which is scheduled for October 10th 20X3. The Directors also decided to offer ordinary shareholders the opportunity to elect to take their dividends in shares (DRP). The conditions are that shareholders who elect for the DRP can take their dividends in shares at 95% of the ASX share price on the day the dividend is declared. When 95% is applied to the ASX share price and the resulting number is not a whole number (ie goes to a part cent) then that number is to be rounded up to the next whole cent. Shareholders have until 30th October 20X3 to elect for the DRP and will have effect for all ordinary share dividends paid after that date.

The following are a selection of ASX share prices for ZHL

Question:

From the above and previous information prepare all the general journal entries that relate equity transactions that occurred for the year ended 30th June 20X3 for Zermatt Holdings Ltd.

CR DR Particulars Date 12,520,000 Bank Trust 20X1 12,520,000 Applications - Ordinary shares Aug 31 (Applications for 12,520,000 Ordinary shares of $1.00 each received) CR DR Particulars Date 10,000,000 Applications- Ordinary shares 20X1 10,000,000 Share capital - Ordinary Sept 1 (Issue of 10,000,000 Ordinary share fully paid to $1.00) CR DR Particulars Date 2,520,000 Applications- Ordinary shares 20X1 2,520,000 Bank Trust Sept 1 (Refund of oversubscription of Ordinary share applications) CR DR Particulars Date 10,000,000 Cash at Bank 20X1 10,000,000 Bank Trust Sept 1 (Transfer of balance monies from Ordinary share issue. CR DR Particulars Date 128,000 Share Issue costs 20X1 128,000 Cash at Bank Oct 21 (Ordinary share issue costs) Particulars CR Date DR 20X1 Cash at Bank 625,000 Share capital - preference 625,000 Nov 1 (Issue of 25,000 8%pa preference shares paid to $25.00) Date Particulars DR CR 20X2 Preference share dividend 25,000 Apr 30 Cash at Bank 25,000 (Payment of 6 month's preference share dividend) The following are a selection of ASX share prices for ZHL Closing Share Price $ Closing Share Price $ Date Date 1.17 1/7/X2 1.01 1.15 10/7/X2 12/9/X2 1.03 1.08 21/9/X2 2317 1.13 1.15 1.15 31/7/X2 30/9/X2 1.23 1/8/X2 1/10/X2 1.20 1.22 9/10/X2 8/8/X2 1.21 17/8/X2 19/10/X2 1.26 1.22 1.20 1.25 31/10/X2 31/8/X2 CR DR Particulars Date 12,520,000 Bank Trust 20X1 12,520,000 Applications - Ordinary shares Aug 31 (Applications for 12,520,000 Ordinary shares of $1.00 each received) CR DR Particulars Date 10,000,000 Applications- Ordinary shares 20X1 10,000,000 Share capital - Ordinary Sept 1 (Issue of 10,000,000 Ordinary share fully paid to $1.00) CR DR Particulars Date 2,520,000 Applications- Ordinary shares 20X1 2,520,000 Bank Trust Sept 1 (Refund of oversubscription of Ordinary share applications) CR DR Particulars Date 10,000,000 Cash at Bank 20X1 10,000,000 Bank Trust Sept 1 (Transfer of balance monies from Ordinary share issue. CR DR Particulars Date 128,000 Share Issue costs 20X1 128,000 Cash at Bank Oct 21 (Ordinary share issue costs) Particulars CR Date DR 20X1 Cash at Bank 625,000 Share capital - preference 625,000 Nov 1 (Issue of 25,000 8%pa preference shares paid to $25.00) Date Particulars DR CR 20X2 Preference share dividend 25,000 Apr 30 Cash at Bank 25,000 (Payment of 6 month's preference share dividend) The following are a selection of ASX share prices for ZHL Closing Share Price $ Closing Share Price $ Date Date 1.17 1/7/X2 1.01 1.15 10/7/X2 12/9/X2 1.03 1.08 21/9/X2 2317 1.13 1.15 1.15 31/7/X2 30/9/X2 1.23 1/8/X2 1/10/X2 1.20 1.22 9/10/X2 8/8/X2 1.21 17/8/X2 19/10/X2 1.26 1.22 1.20 1.25 31/10/X2 31/8/X2