The equity of Pango Pango Oil Extraction and Refining Company Limited at 30 June 2023 consisted of the below 400 000 ordinary A shares issued at $2 00, fully paid $800 000 300 000 ordinary B shares issued at $2 00, called to $1 20 360 000 50 000 6 preference shares issued at $1 50, fully paid 75 00...

To record the transactions we will prepare general journal entries for each transaction Here are the journal entries for the transactions that occurre ...

The equity of Pango Pango Oil Extraction and Refining Company Limited at 30 June 2023 consisted of

Fantastic news! We've Found the answer you've been seeking!

Question:

The equity of Pango Pango Oil Extraction and Refining Company Limited at 30 June 2023 consisted of the below.

400 000 ordinary ‘A’ shares issued at $2.00, fully paid	$800 000
300 000 ordinary ‘B’ shares issued at $2.00, called to $1.20	360 000
50 000 6% preference shares issued at $1.50, fully paid	75 000
Retained earnings	318 000

Required

Prepare general journal entries to record the below transactions, which occurred during the year ended 30 June 2023 & 2024.

Prepare the equity section of the statement of financial position as at 30 June 2024.

2023
Sept. 15	The preference dividend and the final ordinary dividend of 16c per fully paid share, both declared on 30 June 2023, were paid. The directors do not need any other party to authorise the payment of dividends.
Nov. 1	A 1-for-5 renounceable rights offer was made to ordinary ‘A’ shareholders at an issue price of $1.90 per share. The expiry date on the offer was 30 November 2023. The issue was underwritten at a commission of $10,000.
Nov. 30	Holders of 380 000 shares accepted the rights offer, paying the required price per share, with the renounced rights being taken up by the underwriter. Ordinary ‘A’ shares were duly issued.
Dec. 10	Money due from the underwriter was received.
2024
Jan. 10	The directors transferred $35 000 from retained earnings to a replacement reserve.
Feb. 28	The directors issued 70 000 ordinary ‘C’ shares at $1.80, in a private placement.
Apr. 30	The directors made a call on the ordinary ‘B’ shares for 80c per share. Call money was payable by 31 May.
May 31	All call money was received except for that due on 1 000 shares.
June 18	Shares on which the final call was unpaid were forfeited and a forfeited share reserve was set up.
June 30	Profit and comprehensive income for the year was $1 580 000.
June 30	The directors declared a 10c per share final dividend on all fully paid A and B ordinary shares, 5 c per share on C shares, and the dividend on preference shares. All dividends to be paid on 15 September 2024.