QUESTION FOUR $[25]$

Success Limited registered with the CIPC and the Certificate of Commencement was issued on

$1$ July $2022.$ Authorised share capital was granted as follows:

$900000$ Ordinary shares of R$2$ each, and

$40000010\%$ Preference shares of R$5$ each

The following transactions took place for the year ended $30$ June $2023.$

$2022$

$4$ July

The Founders resolved to purchase $100000$ Ordinary shares at R$2$ each and

$2000010\%$ Preference shares at R$5$ each. The share certificates for the Ordinary

shares and the $10\%$ Preference Shares were issued to the Founders as agreed.

$7$ July Upon receipt of the share certificates, the Founders paid in full as resolved.

$2$ Sept The Company offered $100000$ Ordinary shares at R$2$ each to the public. The

closing date for applications was $2$ December $2023.$

$2$ Dec Application for $110000$ ordinary shares were received from the public with their

application monies and the regulatory application documents.

$($continued$)$

$30$ Dec Shares were allotted to successful applicants.

$2023$

$6$ Jan

Unsuccessful applicants were refunded their application monies. The company

paid R$7300$ in respect of share issue expenses.

$1$ May Ordinary dividends of $10$ cents per share were declared by the Directors after

approval by the shareholders at the annual general meeting. Dividends were

payable on $10$ June $2023.$

$10$ June Dividends due to shareholders were paid.

$30$ June Record the income tax expense that was calculated at R$124800$ for the

current financial year. Provisional tax payments have not been made.

$30$ June Record the closing entry at end of the financial year for the Share issue

expenses of R$7300$

Required:

Prepare general journal entries to record all the relevant transactions regarding the issue of

shares during the current financial year ended $30$ June $2023.$ Include general journal entries for

the declaration and payment of dividends, the income tax expense, the payment of dividends as

approved, and the year$-$end closing entry for the share issue expenses.

NB: You are required to also record the date and a short narration for each transaction