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3. Journalizing issuance of shares, treasury shares Mara Berhad has the following information Mara Berhad Statement of Financ
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a) Journal Entries
Date Particulars Debit Credit
01-Jun Office Building                                                      Dr. 5,04,000
             To Ordinary Shares/ Common Stock 3,20,000
             To Paid in Capital A/c 1,84,000
(Being common stock issued against office building at over par value)
01-Jul Tteasury Shares A/c                                            Dr. 1,35,000
             To Cash A/c 1,35,000

(Being 3,000 Treasury Shares issued against cash at RM 45)

Cash A/c                                                                   Dr. 3,50,000
01-Jul               To Preferred Shares A/c 3,50,000
(Being Preferred shares issued against cash at par value)
Depreciation A/c                                                  Dr. 5,927
31-Dec               To Office Building A/c 5,927
(Being Depreciation Charged on Office building for 7 months)
b) Extract of Statement of Financial Position
Shareholders' Equity
Paid in Capital
Preferred Shares
100,000 shares authorized
       52,000 shares issued and outstanding 26,00,000
Ordinary Shares
150,000 shares authorized
       86,000 shares issued, 83,000 shares outstanding 34,40,000
       Paid in Capital in Excess of par 1,84,000 36,24,000
Retained Earnings 1,01,000
          Subtotal 63,25,000
Less : Treasury Shares (3,000 shares at RM 45) 1,35,000
Total Shareholder's Equity 61,90,000
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