b) Energy Sdn Bhd wes-reeerded with en euthericed cepital of-200,000 7% preference eheresof RML00 eaceh and 1,000,000 ordinary obares-ef RM2.00 eneh. On 30 October 2016,Board of Directors decided to offer and issue 250,000 ordinary shares ef RM2.00 eneh atthe price of RM2.30. The payment for the issuance of shares were as follows:On applicationRM 0.60On allotmentRM 0.70 (including premium)On 1 callRM 0.70On 2nd callRM 0.30On the last day of application, 400,000 shares application were received and Board ofDirectors decided to reject 100,000 unsuccessful shares and the money will be refunded.The surplus money on application will be transferred to the allotment account.All monies were duly collected upon application except for a shareholder name Ammarwith 10,000 shares has paid the 2nd call during the 1" call, and another shareholder nameAmyra who has3,000 shares failed to pay the 2 call money.You are required to prepare the journal entries to record all the transactions.

The next step shows the journal entries for the above transactions in the books of Energy Sdn Bhd…

Answered: b) Energy Sdn Bhd wes-reeerded with en…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 26P

See similar textbooks

Similar questions

Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.
Subscriptions On August 3, 2019, the date of incorporation, Quinn Company accepts separate subscriptions for 1,000 shares of 100 par preferred stock at 104 per share and 9,000 shares of 110-par, no-stated-value common stock for 22 per sl1are. The subscription contracts require a 10% down payment, with the balance due by November 1, 2019. Shares are issued to each subscriber upon full payment. On November 1, Quinn received the remaining balances for the shares of preferred stock and common stock. Required: Prepare journal entries to record all the transactions related to: 1. the preferred stock 2. the common stock
Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000
Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.
Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
Juniper Company is authorized to issue 5,000,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Mar. 1, issued 4,000 shares of stock in exchange for equipment worth $250,000. Journalize the transaction.
Vishnu Company is authorized to issue 500,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Apr. 10, issued 1,000 shares of stock for legal services valued at $15,000. Journalize the transaction.
a) JH Bhd issued 20,000 redeemable preference shares for RM20,000 cash on 24 August 2020. Dividend payment is mandatory at 10 sen per share. Redemption is discretionary. The current borrowing cost of the company is 8%. Required: i) Determine the liability component and the equity component of the redeemable preference shares. ii) Provide two other types of preference shares which can be treated as compound financial instrument. b) In a rights offer, AY Bhd issued 500,000 ordinary shares at a price of RM2.00 per share for cash. As a package with the rights issue, the company also issued 500,000 free warrants. The warrants entitle shareholders to subscribe for ordinary shares at an exercise price of RM2.50 per share within two years of the issue. The fair value of the ordinary shares and warrants at the date of issue are RM1.60 and RM0.40 respectively. Required: Explain how AY Bhd should account for the proceeds from rights issue with free warrants and the subsequent exercise of…
Anggerik Berhad has an authorized share capital of 80000000 ordinary shares of Rm 1 each; of which 40000000 shares have been issued and fully paid. On 1 April 2015, Anggerik offered for sale 30000000 ordinary shares at Rm 1.80 per share payable as follows: On application Rm 1 ( including premium ) On allotment Rm 0.40 On first and final call Rm 0.40 On 15 April 2015, the application list was closed and 50000000 applications were received. Applications for 10000000 shares were unsuccessful and the cash paid in respect of such shares were returned. All the other applications were reduced proportionately, the balance of application money being applied to the amount due on allotment. The balance due on allotment was received on 31 May 2015 except in the case of one holder of 20000000 shares was paid in the call money along with the allotment money. Another holder of 1000000 shares did not pay the allotment money as well as the first and…
2. Knicks Corporation was organized on January 1, 2018 with authorized capital of P 2,000,000, P 20 par value. Subsequently, incorporators subscribed for 25,000 shares at P 24. How much must be paid up upon subscription to comply with the requirement of the Securities and Exchange Commission?Required to answer. Single choice. a. P125,000 b. P500,000 c. P600,000 d. P150,0003. On June 1, 2015, Golden Warriors Corporation declared a share capital dividend entitling its shareholders to one additional share for each share held. At the time the dividend was declared, the market value was P 100 per share and the par value was P 50 per share. On this date, Golden had 65,000 shares issued and 5,000 shares in the treasury. What entry should Golden make to record this June 1 transaction?Required to answer. Single choice. a. debit Retained earnings-P6,000,000; credit Share Capital Dividend Distributable-P3,000,000; credit Paid in Capital from Share CapitalDividends-P3,000,000…

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Financial Accounting: The Impact on Decision Make…

Accounting

ISBN:

9781305654174

Author:

Gary A. Porter, Curtis L. Norton

Publisher:

Cengage Learning

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Financial Accounting: The Impact on Decision Make…

Accounting

ISBN:

9781305654174

Author:

Gary A. Porter, Curtis L. Norton

Publisher:

Cengage Learning

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Financial Accounting

Accounting

ISBN:

9781305088436

Author:

Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS