Kusasa Limited was formed on 1 January 2015 with an authorised capital consisting of 150 000 ordinary shares. The subscribers to the memorandum subscribed for and paid for 4 000 ordinary shares at R1 each and were allotted the shares on 1 January. The company then offered to the public 96 000 ordinary shares at R1.10 per share. The issue was fully underwritten by Martin Finance House for a commission of 6% of the issue price. The public applied for 90 000 ordinary shares and all application money was received by 4 January. The shares were allotted on 8 January. On the same date the company paid the underwriting commission and share issue expenses of R3 000. On 28 February the company purchased the following assets: Motor vehicles R80 000 Furniture and equipment R30 000 During the year the company made a profit of R10 556. The bank balance on 31 December 2015 was R820. REQUIRED: Prepare: (a) (b) Journal entries to record the above transactions. Narrations may be omitted. Closing entries are not required. The Statement of Financial Position at 31 December 2015 and Statement of Changes in Equity for the year ended 31 December 2015 of Kusasa Limited. These statements should comply with International Financial Reporting Standards (insofar as the necessary information is given above).
Kusasa Limited was formed on 1 January 2015 with an authorised capital consisting of 150 000 ordinary shares. The subscribers to the memorandum subscribed for and paid for 4 000 ordinary shares at R1 each and were allotted the shares on 1 January. The company then offered to the public 96 000 ordinary shares at R1.10 per share. The issue was fully underwritten by Martin Finance House for a commission of 6% of the issue price. The public applied for 90 000 ordinary shares and all application money was received by 4 January. The shares were allotted on 8 January. On the same date the company paid the underwriting commission and share issue expenses of R3 000. On 28 February the company purchased the following assets: Motor vehicles R80 000 Furniture and equipment R30 000 During the year the company made a profit of R10 556. The bank balance on 31 December 2015 was R820. REQUIRED: Prepare: (a) (b) Journal entries to record the above transactions. Narrations may be omitted. Closing entries are not required. The Statement of Financial Position at 31 December 2015 and Statement of Changes in Equity for the year ended 31 December 2015 of Kusasa Limited. These statements should comply with International Financial Reporting Standards (insofar as the necessary information is given above).
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 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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please answer all parts of the question within 30 minutes.
Transcribed Image Text:Kusasa Limited was formed on 1 January 2015 with an authorised capital consisting of 150 000
ordinary shares. The subscribers to the memorandum subscribed for and paid for 4 000 ordinary
shares at R1 each and were allotted the shares on 1 January. The company then offered to the
public 96 000 ordinary shares at R1.10 per share. The issue was fully underwritten by Martin Finance
House for a commission of 6% of the issue price.
The public applied for 90 000 ordinary shares and all application money was received by 4 January.
The shares were allotted on 8 January. On the same date the company paid the underwriting
commission and share issue expenses of R3 000.
On 28 February the company purchased the following assets:
Motor vehicles
Furniture and equipment
R80 000
R30 000
During the year the company made a profit of R10 556. The bank balance on 31 December 2015
was R820.
REQUIRED:
Prepare:
(a)
(b)
Journal entries to record the above transactions. Narrations may be omitted. Closing entries
are not required.
The Statement of Financial Position at 31 December 2015 and Statement of Changes in
Equity for the year ended 31 December 2015 of Kusasa Limited. These statements should
comply with International Financial Reporting Standards (insofar as the necessary
information is given above).
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