90.2K
Verified Solution
Link Copied!
The following is the statement of financial position of the Generation Bhd as at 30 June 2019:
| Generation Bhd |
| Statement of Financial Position as at 30 June 2019 |
| | | | | | | | RM |
| Non-current assets | | | | | |
| Land and building | | | | | | 15,000,000 |
| Investment | | | | | | 4,000,000 |
| | | | | | | | |
| Current asset | | | | | | |
| Other current assets | | | | | 3,013,600 |
| Bank | | | | | | | 4,200,000 |
| | | | | | | | 26,213,600 |
| Issued and paid-up capital | | | | | |
| 4,000,000 ordinary shares | | | 8,000,000 |
| Reserves | | | | | | |
| Retained earnings | | | | | | 6,953,600 |
| | | | | | | | 17,453,600 |
| Non-current liabilities | | | | | |
| 7 million 5% Redeemable Preference Shares | | | 10,500,000 |
| 10% debentures | | | | | | 760,000 |
| | | | | | | | 26,213,600 |
| | | | | | | | |
The directors decided on the following matters:
- The company decided to redeem half of 5% Redeemable Preference Shares.
- In order to finance the redemption, the company decided to issue 2,000,000 unit of ordinary shares at RM2.
3. To dispose half (1/2) of the investments at a profit of RM200,000.
Required: Journalize the above transactions. (7 marks)
Answer & Explanation
Solved by verified expert
