The following is the information extracted from the accounting records of Rainbow Bhd as at 1...
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The following is the information extracted from the accounting records of Rainbow Bhd as at 1 January 2021: Preference Share, 5% Ordinary Share 13 Mac 25 June 1 Dec 15 Dec Issued and fully paid, 35,000 unit Retained Earnings During 2021, the following transactions occurred: 30 Nov Issued and fully paid, 100,000 unit RM 700,000 Updates the shareholders' record. Paid the cash dividend. 100,000 1,105,000 Issued 30,000 unit ordinary shares at price RM1.50 per unit Issued 25,000 unit preference shares, 5% to acquire a land. The market price of the preference share on the date of issuance was RM12 per share. The market value of the land was estimated around RM285,000. Board of Directors declared the cash dividend RM500,000 to all preference and ordinary shareholders. Net income of the Rainbow Bhd for the year ended 31 December 2021 is RM200,000. Required: a) Show the journal entry to record all the above transactions. b) Show the Shareholders' equity part in the Statement of Financial Position as at 31 December 2021. The following is the information extracted from the accounting records of Rainbow Bhd as at 1 January 2021: Preference Share, 5% Ordinary Share 13 Mac 25 June 1 Dec 15 Dec Issued and fully paid, 35,000 unit Retained Earnings During 2021, the following transactions occurred: 30 Nov Issued and fully paid, 100,000 unit RM 700,000 Updates the shareholders' record. Paid the cash dividend. 100,000 1,105,000 Issued 30,000 unit ordinary shares at price RM1.50 per unit Issued 25,000 unit preference shares, 5% to acquire a land. The market price of the preference share on the date of issuance was RM12 per share. The market value of the land was estimated around RM285,000. Board of Directors declared the cash dividend RM500,000 to all preference and ordinary shareholders. Net income of the Rainbow Bhd for the year ended 31 December 2021 is RM200,000. Required: a) Show the journal entry to record all the above transactions. b) Show the Shareholders' equity part in the Statement of Financial Position as at 31 December 2021.
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a Show the journal entry to record all the above transactions Answer a Journal Entries Amount in RM ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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