Ondjobo Limited is a company that was incorporated on 1 April 2010 and listed in the...

   

Transcribed Image Text:

Ondjobo Limited is a company that was incorporated on 1 April 2010 and listed in the following year. It has the following authorized share capital: L8 million ordinary shares of no-par value B. 2 million preference shares of NS 5 each per share. As at 1 April 2022 the following was issued capital 1.5 million ordinary shares for N53 500 000 IL 1 million 8% preference shares at N$5.25 per share for N$5 000 000 The following were other balances on 1 April 2022. Retained earnings N$9 375 500 Asset replacement reserve N$800 000 Share premium (8% preference shares) N$250 000 L I H Transactions during the current year: 15 April 2022: 25 April 2022: 1 May 2022: 30 May 2022: 1 June 2022: 30 September 2022: 31 March 2023: Bought the following assets; vehicles NS600 000, inventory N$150 000 and machinery N$250 000 from Alpha Ltd. Settled the purchase of assets on 15 April by issuing 200 000 ordinary shares for N$1 000 000. The shares were immediately allotted. Share issue expenses pertaining to the shares issued on 25 April amounts to N$25 500. issued to the public 200 000, 8% preference shares at N$5.30 per share. The public subscribed for 300 000 preference shares and all refunds were made to all unsuccessful applicants. All successful share applicants were allotted. Interim dividend of 10 cents per share was declared and paid. (1) (2) (3) Profit after tax for the period amounts to N$987 500. Income tax is charged at 32%, N$1 050 000 should be transferred to the general reserve. To convert the preference share into no par value shares Final dividend to both types of shareholders was declared. Ordinary share dividend is 10 cents per share. Share issue expenses should be written off against retained earnings. YOU ARE REQUIRED TO: 1. Prepare the General Journal entries for Ondjobo Limited to record the above transactions (Narrations are not required) (17 Marks) Ondjobo Limited is a company that was incorporated on 1 April 2010 and listed in the following year. It has the following authorized share capital: L8 million ordinary shares of no-par value B. 2 million preference shares of NS 5 each per share. As at 1 April 2022 the following was issued capital 1.5 million ordinary shares for N53 500 000 IL 1 million 8% preference shares at N$5.25 per share for N$5 000 000 The following were other balances on 1 April 2022. Retained earnings N$9 375 500 Asset replacement reserve N$800 000 Share premium (8% preference shares) N$250 000 L I H Transactions during the current year: 15 April 2022: 25 April 2022: 1 May 2022: 30 May 2022: 1 June 2022: 30 September 2022: 31 March 2023: Bought the following assets; vehicles NS600 000, inventory N$150 000 and machinery N$250 000 from Alpha Ltd. Settled the purchase of assets on 15 April by issuing 200 000 ordinary shares for N$1 000 000. The shares were immediately allotted. Share issue expenses pertaining to the shares issued on 25 April amounts to N$25 500. issued to the public 200 000, 8% preference shares at N$5.30 per share. The public subscribed for 300 000 preference shares and all refunds were made to all unsuccessful applicants. All successful share applicants were allotted. Interim dividend of 10 cents per share was declared and paid. (1) (2) (3) Profit after tax for the period amounts to N$987 500. Income tax is charged at 32%, N$1 050 000 should be transferred to the general reserve. To convert the preference share into no par value shares Final dividend to both types of shareholders was declared. Ordinary share dividend is 10 cents per share. Share issue expenses should be written off against retained earnings. YOU ARE REQUIRED TO: 1. Prepare the General Journal entries for Ondjobo Limited to record the above transactions (Narrations are not required) (17 Marks)

Answer rating: 100% (QA)

Certainly I can help you prepare the journal entries and the statement of changes in equity for Ondj... View the full answer