PT BEGIN has just started its first operations in 2021. To obtain funding the Company decided to create 2 schemes through the issuance of shares and applying for a loan to the Bank. The following are transactions related to these funding events:
1 Jan 21 Issued 100,000 Series A shares with a par value of IDR 1,000 to the limited public
10 Jan 21 Applying for a loan to Bank MOGU in the amount of IDR 500,000,000 by issuing a 5-year 12% Bond at a realization rate of 97%

20 Mar 21 Issued 150,000 Series A shares to acquire Land worth IDR 250,000,000 with a par value of IDR 1,000
1 May 21 Received cash amounting to Rp300,000,000 to be exchanged for 200,000 Series A shares. The par value of the shares at the time of the transaction remained IDR 1,000.
30 Jun 21 Based on the evaluation, the company gets a net profit (net income) per 6 months of IDR 700,000,000
30 Jun 21 Declared and paid dividends to all shareholders with a value of IDR 25 per share.
Required:
a. Prepare journal entries for the transactions listed above and give your explanation!
b. Calculate how much funding costs must be paid by the company from the 2 selected financing schemes until June 30, 2021 and explain your answer!
c. Decide which is more profitable issuing shares or issuing debt securities (referring to the events in the problem)? Explain.

Answer rating: 100% (QA)

Date Transaction Amount 112021 Issued shares at par 100 100000 shares 1012021 Loan from bank 50000... View the full answer