Macy Berhad has issued share capital of 5,000,000 ordinary shar es of $0.50 each and 200,000 6% preference shares of $2 each, in addition to borrowings in the form of 5% debentures totaling $1,000,000.
The board of directors are now recommending a 5% final dividend to be paid to ordinary shareholders and to pay dividends to preference shareholders. No interim dividends have been paid. Applicable tax rate is 25%.
Interest on debenture s paid during the year was $25 ,000. The remaining interest on debentures is still outstanding at year-end.
(a) Show the necessary journal entries of the above dividend and debenture interest transactions. (show all workings)
(b) Prepare the Statement of financial position extract to show the above position as at year-end
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Macy Berhad has issued share capital of 5,000,000 ordinary shar es of $0.50 each and 200,000 6% preference shares of $2 each, in addition to borrowings in the form of 5% debentures totaling $1,000,000.
Macy Berhad has issued share capital of 5,000,000 ordinary shar es of RM0.50 each and 200,000 6% preference shares of RM2 each, in addition to borrowings in the form of 5% debentures totaling RM1,000,000.The board of directors are now recommending a 5% final dividend to be paid to ordinary shareholders and to pay dividends to preference shareholders. No interim dividends have been paid. Applicable tax rate is 25%.Interest on debenture s paid during the year was RM25 ,000. The remaining...
Exercise 11.6 Preference share Alternatives L.O. 5, 6 Walker Limited has the following capital structure: Preference shares— $25 par value, 10,000 shares authorized, 8,900 shares issued and outstanding Ordinary shares— 510 par value, 100,000 shares authorized 80,000 shares issue and outstanding $ 222,500 800,000 Total issued and fully paid capital Retained earnings $1,022,500 550,000 Total shareholders' equity $1,572,500 The number of issued and outstanding shares of both preference and ordinary shares have been the same for the last two years....