Question $3$

Delishjam Berhad $($DjB$)$ is a relatively small listed company which makes delicious

jams from tropical fruits. On $31$ December $2020,$ it had issued ordinary share capital of

$100,000$ shares at RM $5$ each. In $2021,$ DjB needed more funds to expand its growing

business, hence on $2$ January $2021,$ DjB issued $7\%,$ three$-$year RM$500,000$ bonds at

RM$527,235.$ The market interest rate on that date was $5\%$ per annum. Interest on the

bond is payable annually. On $31$ December $2021,$ DjB announced a rights issue of RM$4$

per share for every $4$ shares held.

Required:

a$.$ Prepare an Effective Interest Amortisation Table for the bond, for the financial

year $2021,2022$ and $2023.[$Note: All answers should be rounded to the nearest

Ringgit.$]$

b$.$ Journalise the entries for $2$ January $2021$ and $31$ December $2021$ only, to record

the issuance of bonds, payment of interest on bonds and rights issues of ordinary

shares, respectively. $[$Note: Narratives are required on the journal entries.$]$

$(11$ marks$)$

c$.$ Draft the extract of the Statement of Financial Position as at $31$ December $2022$

to present ordinary share eapital and bonds as at that date.