Solution:
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 |
3. Journalizing issuance of shares, treasury shares Mara Berhad has the following information Mara Berhad Statement...
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