aranji Tegar Bhd (KTB), an oil and gas company has 6,000,000 ordinary shares with a market value of RM2.55 per share as of 1 January 2020. On that date, the equity section also showed RM250,000,000 retained earnings balance and RM3,000,000 revaluation reserve balance. The following transa
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Karanji Tegar Bhd (KTB), an oil and gas company has 6,000,000 ordinary shares with a market value of RM2.55 per share as of 1 January 2020. On that date, the equity section also showed RM250,000,000
The following transactions related to KTB during the year 2020:
1. On 11 January 2020, the company issued 250,000 ordinary shares at RM2.40 each payable in full on application. Actual applications for 400,000 ordinary shares were received. Balloting was carried to select the successful applicants and cash received from unsuccessful applicants were returned on 28 February 2020. Other costs paid was RM2,800 for underwriters' fees, RM4,000 for legal fees and RM400 for printing.
2. On 30 September 2020, the company declared a 2% share dividend to existing shareholders. The share dividend was distributed on the same date. The market price of the share was RM2.60.
3. On 31 December 2020, the company declared a cash dividend of RM0.04 per share to its shareholders.
Additional information:
1. Profit for the year 2020 was RM23,000,000.
2. For the year ended 2020, the company’s properties were revalued which resulted in a gain of RM800,000.
Assume that the approval from all the relevant authorities has been obtained and complied with for the above transactions.
REQUIRED:
(Round all figures to the nearest RM)
(a) Prepare the appropriate
(b) Prepare the Statement of Changes in Equity for Karanji Tegar Bhd for the year ended 31 December 2020.
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- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.
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