Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the extract from the statement of financial positi

The extract from the statement of financial position of Nemo Bhd as at 31 December...

60.1K

Verified Solution

Question

Accounting

The extract from the statement of financial position of Nemo Bhd as at 31 December 8 is given below.
Nemo Bhd
Statement of Financial Position as at 31 December x8(Extract)
Equity and reserves
Issued and fully paid-up capital
30,000,000 ordinary shares, fully paid up
Retained profits
Due to the liquidity problem faced by the company, the directors decided to give to the shareholders share dividend
of one ordinary share for every ten ordinary shares held and the retained profit was to be used for this purpose.
At the same time, Nemo made a rights issue of 1,000,000 shares to the existing shareholders at RM2 each. The
market price of the share was RM3 each.
Required:
Show the journal entries to record the transactions and prepare the statement of financial position after the
completion of the transaction.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

As a result of the mortgage crisis, many banks reported record losses to their mortgage receivables...

Accounting
Q

The best way to describe genetic diversity in humans is by describing it as a geographic...

Biology
Q

As a technician in a large pharmaceutical research firm, you need to produce 450. mL of...

Chemistry
Q

If a 90 W bulb 90 W dissipates when connected across 120 V is connected...

Physics
Q

11% of all Americans live in poverty. If 47 Americans are randomly selected, find the...

Basic Math
Q

Select the correct claim null hypothesis and alternative hypotheses for the given claim Claim the...

Statistics
Q

F x y z cos z i 3ysin 3z j 6x zk a Find div...

Calculus
Q

Find the the domain of the function f x O xl x 8 O xl...

Algebra
Q

The following data relates to company X Ltd for 2019 and 2020: ...

Accounting
Q

Qu impacto tiene un informe de deudores en las actividades operativas y qu accin podra...

Accounting
Q

MinMin Corporation gathered the following information: Income tax rate 40% Contribution-margin ratio 30%...

Accounting
Q

Wu Company incurred $40,000 of fixed cost and $50,000 of variable cost when 4,000 units...

Accounting