Success Limited registered with the CIPC and the Certificate of Commencement was issued on 1 July...

    

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Success Limited registered with the CIPC and the Certificate of Commencement was issued on 1 July 2022. Authorised share capital was granted as follows: 900 000 Ordinary shares of R2 each, and 400 000 10% Preference shares of R5 each The following transactions took place for the year ended 30 June 2023. 2022 4 July 7 July 2 Sept 2 Dec ● ● The Founders resolved to purchase 100 000 Ordinary shares at R2 each and 20 000 10% Preference shares at R5 each. The share certificates for the Ordinary shares and the 10% Preference Shares were issued to the Founders as agreed. Upon receipt of the share certificates, the Founders paid in full as resolved. The Company offered 100 000 Ordinary shares at R2 each to the public. The closing date for applications was 2 December 2023. Application for 110 000 ordinary shares were received from the public with their application monies and the regulatory application documents. 30 Dec 2023 6 Jan 1 May 10 June 30 June 30 June Shares were allotted to successful applicants. Unsuccessful applicants were refunded their application monies. The company paid R7 300 in respect of share issue expenses. 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. Dividends due to shareholders were paid. Record the income tax expense that was calculated at R124 800 for the current financial year. Provisional tax payments have not been made. Record the closing entry at end of the financial year for the Share issue expenses of R7 300 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 Success Limited registered with the CIPC and the Certificate of Commencement was issued on 1 July 2022. Authorised share capital was granted as follows: 900 000 Ordinary shares of R2 each, and 400 000 10% Preference shares of R5 each The following transactions took place for the year ended 30 June 2023. 2022 4 July 7 July 2 Sept 2 Dec ● ● The Founders resolved to purchase 100 000 Ordinary shares at R2 each and 20 000 10% Preference shares at R5 each. The share certificates for the Ordinary shares and the 10% Preference Shares were issued to the Founders as agreed. Upon receipt of the share certificates, the Founders paid in full as resolved. The Company offered 100 000 Ordinary shares at R2 each to the public. The closing date for applications was 2 December 2023. Application for 110 000 ordinary shares were received from the public with their application monies and the regulatory application documents. 30 Dec 2023 6 Jan 1 May 10 June 30 June 30 June Shares were allotted to successful applicants. Unsuccessful applicants were refunded their application monies. The company paid R7 300 in respect of share issue expenses. 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. Dividends due to shareholders were paid. Record the income tax expense that was calculated at R124 800 for the current financial year. Provisional tax payments have not been made. Record the closing entry at end of the financial year for the Share issue expenses of R7 300 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

Answer rating: 100% (QA)

I can provide guidance on how to approach these journal entries but please note that the specific amounts and details may require verification Also ke... View the full answer