On 1 January 2021, Jasmine Bhd's capital structure was as follows:RM120,000192,000Ordinary share capital 80,000 units of sharesRetained EarningsIn March the company made a rights issue of I share for every 2 held at RM2.00 pershare. This was fully taken up. In July the company made a bonus issue of 1 share forevery 6 held at RM1.50 per share, using the retained account to finance this issue. Aninterim dividend of RM0.03 per share was paid on 30 September 2021. All transactionwas through the bank.Required:1. Prepare the ordinary share capital account for the year.11 Prepare the Retained Earnings account for the year.A

Finance is blood for Every Business Organization. Business Entities need finance to start its…

Answered: Required: 1. Prepare the ordinary share…

Required: 1. Prepare the ordinary share capital account for the year. Prepare the Retained Earnings account for the year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

On 1 January 2021, Jasmine Bhd's capital structure was as follows:
RM
120,000
192,000
Ordinary share capital 80,000 units of shares
Retained Earnings
In March the company made a rights issue of I share for every 2 held at RM2.00 per
share. This was fully taken up. In July the company made a bonus issue of 1 share for
every 6 held at RM1.50 per share, using the retained account to finance this issue. An
interim dividend of RM0.03 per share was paid on 30 September 2021. All transaction
was through the bank.
Required:
1. Prepare the ordinary share capital account for the year.
11 Prepare the Retained Earnings account for the year.
A

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