Question: Tutorial activity Question 1 On 10 July 2025 , OceanWave Ltd made a public offer of 750 000 ordinary shares at an issue price of

Tutorial activity

Question 1

On10 July 2025,OceanWave Ltd made a public offer of750 000 ordinary shares at an issue price ofR15 each. The issue was fully underwritten bySA Capitec Bank.

By the closing date of5 August 2025, applications received from the public amounted to500 000 shares. Of these applicants,30% were non-South African residents.

The underwriter charged a3% commission on thetotal value of the issue. In addition, the company incurredshare issue expenses (legal and marketing fees) ofR100 000, which were paid in the following financial year.

On30 September 2025, at the company'sAnnual General Meeting (AGM), aClass A dividend ofR1,50 per share was declared, payable to all shareholders holding Class A shares.

Required:

Record the above transactions in thegeneral journal of OceanWave Ltd.
Prepare theclosing entries at year-end.

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