Question

ACCT 1121 FINANCIAL ACCOUNTING I TUTORIAL QUESTIONS - EQUITY 1. Journalising issuance of shares Myra Corporation Berhad has authorized ordinary share 150,000 had the following transactions June July 1 1 Issued 6,000 shares for cash at RM 43 per shares Issued 3,000 shares for cash RM45 per shares Required: a) Journalize the transactions b) Prepare the equity section 2. Journalizing issuance of shares Mura Berhad has the following information Mura Berhad Statement of Financial Position as at 31 December 2017 RM 2,250,000 Paid in Capital: Preferred shares 100,000 shares authorized 45,000 shares issued and outstanding Ordinary shares 150,000 shares authorized 78,000 shares issued and outstanding Total paid in capital 3.120.000 53,370,000 Retained Earnings Total Shareholders' Equity 101.000.000 547.100.000 June July 1 1 Issued 6,000 shares for cash at RM 63 per shares Issued 3,000 shares for cash RM45 per shares Issued 5,000 preferred shares for cash RM50 per share Required: a) Journalize the transactions b) Prepare the equity section

Answer 1

1 (a) DR/CR DR CR AMOUNT(RM) AMOUNT(RM) 2,58,000 2,58,000 DATE PARTICULARS 01-Jun BANK A/C TO COMMON STOCK A/C (6000 ORDINARY SHARES ISSUED AT 43 PER SHARE) 01-Jul BANK A/C TO COMMON STOCK A/C TO PAID IN CAPITAL IN EXCESS OF PAR VALUE A/C (3000 ORDINARY SHARES ISSUED AT 45 PER SHARE) 1,35,000 DR CR CR 1,29,000 6,000 NOTE SINCE PAR VALUE IS NOT GIVEN IN QUESTION,SHARE ISSSUED ON JUNE 1ST IS ASSUMED AS PAR VALUE (b) AMOUNT(RM) STOCKHOLDER"S EQUITY PAID IN CAPITAL COMMON STOCK 1,50,000 SHARES AUTHORIZED 9000 SHARES ISSUED & OUTSTANDING PAID IN CAPITAL IN EXCESS OF PAR TOTAL PAID IN CAPITAL 3,87,000 6,000 3,93,000 2 (a) DR/CR DR CR CR AMOUNT(RM) AMOUNT(RM) 3,78,000 2,40,000 1,38,000 1,35,000 DATE PARTICULARS 01-Jun BANK A/C TO COMMON STOCK A/C TO PAID IN CAPITAL IN EXCESS OF PAR VALUE A/C (6000 ORDINARY SHARES ISSUED AT 63 PER SHARE) 01-Jul BANK A/C TO COMMON STOCK A/C TO PAID IN CAPITAL IN EXCESS OF PAR VALUE A/C (3000 ORDINARY SHARES ISSUED AT 45 PER SHARE) 01-Jul BANK A/C TO PREFERRED STOCK A/C (5000 PREFERRED SHARES ISSUED AT 50 PER SHARE) DR CR CR 1,20,000 15,000 1 DR 2,50,000 CR 2,50,000 ORDINARY SHARES PAR VALUE = 31,20,000 78,000 40 PREFERRED SHARES PAR VALUE = 22,50,000 45,000 (b) AMOUNT(RM) 25,00,000 STOCKHOLDER"S EQUITY PAID IN CAPITAL PREFERRED STOCK 1,00,000 SHARES AUTHORIZED 50,000 SHARES ISSUED & OUTSTANDING COMMON STOCK 1,50,000 SHARES AUTHORIZED 87,000 SHARES ISSUED & OUTSTANDING PAID IN CAPITAL IN EXCESS OF PAR TOTAL PAID IN CAPITAL RETAINED EARNINGS TOTAL SHAREHOLDER"S EQUITY 34,80,000 1,53,000 61,33,000 10,10,00,000 10,71,33,000