Freezer Limited was incorporated on 30 June 2022. The company's authorized share capital consists of: 250...

 

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Freezer Limited was incorporated on 30 June 2022. The company's authorized share capital consists of: 250 000 7.25% R10 preference shares 4 000 000 R1 ordinary shares The directors paid and received the following shares on 1 July 2022: 100 000 preference shares 2 000 000 ordinary shares Freezer Limited entered into an 2.5% underwriter's agreement with Mrs. Cool on 17 July 2022. On 20 July 2022, 800 000 ordinary shares and 50 000 preference shares were offered in a prospectus. By 18 August 2022, applications were received for 815 000 ordinary shares and for 47 000 preference shares. Allotment was made to the public on 31 August 2022 and Mrs. Cool took up her shares. Her account was settled on 3 September 2022. Share issue costs of R1 500 was incurred by Freezer Limited, fully paid on 6 September 2022. Ordinary dividends of 5c were declared and paid on 31 December 2022. Required: Detail the journal entries to report the share transactions as at 31 December 2022. (25) Freezer Limited was incorporated on 30 June 2022. The company's authorized share capital consists of: 250 000 7.25% R10 preference shares 4 000 000 R1 ordinary shares The directors paid and received the following shares on 1 July 2022: 100 000 preference shares 2 000 000 ordinary shares Freezer Limited entered into an 2.5% underwriter's agreement with Mrs. Cool on 17 July 2022. On 20 July 2022, 800 000 ordinary shares and 50 000 preference shares were offered in a prospectus. By 18 August 2022, applications were received for 815 000 ordinary shares and for 47 000 preference shares. Allotment was made to the public on 31 August 2022 and Mrs. Cool took up her shares. Her account was settled on 3 September 2022. Share issue costs of R1 500 was incurred by Freezer Limited, fully paid on 6 September 2022. Ordinary dividends of 5c were declared and paid on 31 December 2022. Required: Detail the journal entries to report the share transactions as at 31 December 2022. (25)

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The following journal entries are required to record the share transactions of Freezer Limited as at ... View the full answer