Temperas Kayangan Bhd ( TKB ) was formed on 1 January 2 0 0 1 . The
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Question:
Temperas Kayangan Bhd TKB was formed on January The following data were taken from the Statement of Financial Position of TKB on December :
RM
Share capital Ordinary shares outstanding
Retained earnings
Fair value reserve
During the financial year the following transactions took place:
ordinary shares were issued for cash on February at RM per share. Transaction costs paid were as follows:
iii Legal fees RM
iv Underwriters fees RM
TKB has followed a schedule of declaring cash dividends in July and December with payment being made to shareholders of record in the following month of declaration. The cash dividends declared since were shown below:
Declaration Date Dividend
December sen per share
July sen per share
December
No cash dividends were declared during December due to the companys liquidity problem.
During the financial year fair value reserve decreased by RM due to the weaker stock market performance.
Profit for the financial year was RM
REQUIRED:
a Prepare journal entries to record the issuance of shares and dividend related transactions in the financial year
b Prepare the Statement of Changes in Equity for TKB for the year ended December in accordance with the requirements of MFRS Presentation of Financial Statements.
c Share retirement method and treasury share method are two alternative methods of accounting for share buybacks allowed under the Malaysian Companies Act Briefly explain the accounting treatment for share buybacks under treasury share method.
Related Book For
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
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