QUESTION 1Ngunzi Limited is a company that was incorporated in 2007. The company has the followingauthorised and issued share capital:Authorised share capital2 000 000 ordinary shares at R1 per share1 000 000 6% preference shares at R2 per share200 000 8% convertible preference shares at RO.50 per shareIssued share capital as at 1 January 2019200 000 ordinary R1 shares issued at R2 per share50 000 6% R2 preference shares issued at par100 000 8% RO.50 convertible preference shares issued at parAdditional information:On 1 January 2019 the balance of the share premium account was R30 000 and retained earningswas R675 000. The financial year-end of the company is 31 December.On 30 June 2019, an interim dividend of 20 cents per share was declared for the ordinaryshareholders.On 1 September 2019, Mr Ntebo, a sworn appraiser re-valued the building to be R450 000 greaterthan the current book valueOn 1 October 2019, 25% of the authorised 8% convertible preference shares were allotted toshareholders at R2.50 per share.At the end of the year, a final dividend of 40 cents per share was declared.The profit for the year was R534 000 and the tax rate is 28%.REQUIREDPrepare the statement of changes in equity for the year ended31 December 2019. The total column is not required.Show all calculations.1.1Communication skills – structure and layout

Name: QUESTION 1Ngunzi Limited is a company that was incorporated in 2007.
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Description: QUESTION 1Ngunzi Limited is a company that was incorporated in 2007. The company has the followingauthorised and issued share capital:Authorised share capital2 000 000 ordinary shares at R1 per share1 000 000 6% preference shares at R2 per share200

Statement of changes in equity is a part of financial statement showing the changes in level of…

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Business

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Prepare the statement of changes in equity for the year ended 31 December 2019. The total column is not required. Show all calculations.

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 22E

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QUESTION 1 Aalwyn Ltd was incorporated with authorized share capital consisting of 800 000 10% preference shares of $ 2 each and 2 000 000 ordinary shares of N$1.50c each.01 October 2019: The subscribers to the memorandum took and paid for 100 000 ordinary shares at par.During the year, 80% of the remaining ordinary shares and 500 000 preference shares were offered to the public as follows: - The ordinary shares were offered at a premium of 95c per share; and-The preference shares were offered at N$ 5.-01 March 2020: The offer for the subscription of shares opened to the public.-25 March 2020: The offer to the public was closed.-15 April 2020: Allotment of shares offered to public took place and all transactions with the underwriter were also concluded on this date. The issue is being underwritten for a commission of 8%. A total of 400 000 preference shares and 1 700 000 ordinary shares were applied for and the available shares were allotted and the necessary refunds made. The terms of…
QUESTION 1 Aalwyn Ltd was incorporated with authorized share capital consisting of 800 000 10% preference shares of $ 2 each and 2 000 000 ordinary shares of N$1.50c each.01 October 2019: The subscribers to the memorandum took and paid for 100 000 ordinary shares at par.During the year, 80% of the remaining ordinary shares and 500 000 preference shares were offered to the public as follows: - The ordinary shares were offered at a premium of 95c per share; and-The preference shares were offered at N$ 5.-01 March 2020: The offer for the subscription of shares opened to the public.-25 March 2020: The offer to the public was closed.-15 April 2020: Allotment of shares offered to public took place and all transactions with the underwriter were also concluded on this date. The issue is being underwritten for a commission of 8%. A total of 400 000 preference shares and 1 700 000 ordinary shares were applied for and the available shares were allotted and the necessary refunds made. The terms of…