Answer to Question #140982 in Accounting for nini

Question

1. Bonus issue of one ordinary shares for every ten-share held were given to the shareholder.

2. On 1st February the company issued 30,000,000 Ordinary shares at RM1.80. The application received were oversubscribed by 5,000,000 units. The applications monies in respect of the unsuccessful applications were returned to the applicants.

3. The company also issued additional 2,000,000 unit of 7% Preference shares at RM 4 each. The shares undersubscribed by half.

4. On 1st April 2019, 8% Debentures RM500,000 were issued . The effective interest rate is 9% and the issuance cost incurred is RM10, 000. The company decided to use amortised cost method in recognising the debentures.


5. Investment costing RM600, 000 was sold at a gain of RM15, 000.

Answer 1

Dear nini, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order