Answer to Question #184271 in Accounting for EDWARD

Question

01 February 2018 Rustenburg Ruiters Ltd had 10 000 000 authorised and 8 000 000 issued ordinary shares. Ordinary shares have a par value of N$ 2.95 each. On this date the share premium and retained earnings had a balance of nil and N$ 1 200 000 respectively. 2. On 28 February 2018 Rustenburg Ruiters Ltd decided to issue all the remaining authorized shares. Lavender Brokers Ltd underwrote the shares issue in return for a 3% underwriting commission. Rustenburg Ruiters Ltd notified shareholders that it would issue ordinary shares for N$ 3 each. 3. By 31 March 2018, the closing date of the application, Rustenburg Ruiters Ltd had received N$ 4 500 000 from applicants. The maximum number of shares was duly issued on 31 March 2019 and Lavender Brokers Ltd was paid. . 4. Rustenburg Ruiters Ltd issued 300 00, N$ 2, 14% preference shares on 30 April 2018 at a 5% premium. Required; STATEMENT OF CHANGES IN EQUITY

Answer 1

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