(b)Shalom ltd showed the following in its Equity Section of its financial position as at 31st December 2015; Authorised

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B Shalom Ltd Showed The Following In Its Equity Section Of Its Financial Position As At 31st December 2015 Authorised 1 (176.71 KiB) Viewed 40 times

(b)Shalom ltd showed the following in its Equity Section of its financial position as at 31st December 2015; Authorised share capital sh 8%cumulative preference stock ,kshs 10 8000,000 par, 800,000 shares. Common Stock shs5 par, 500,000 shares. 2500.000 Issued share capital Cumulative Preference Stock 8% 400,000 4,000,000 shares@10 par value Shs Common Stock 300,000 shares @ sks 5= par 1,500,000 value Share premium 1,350,000 Retained Earnings 280,000 Net Profit for the Year 2015 1,240,000 der The following transactions took place in the year 2016; 10th january The board approved the payments of Dividends for both the Preference as well as common shareholders at shs1.50 per share, 2 february Issued 100, 000 additional cominon stock at shs 18 per share for cash. 30th March Issued 100, 000 additional cumulative preference shares at shs 18 per share for cash.. 1st April Paid dividends 1st June Issued 200,000 cumulative Preference shares at shs 10 per share on subscription basis paying 60% down payment. 25th June. Received the balance of preference shares and alloted the shares. 31st Dec. Profit after tax shs 675,000 Required; (i) Journal entries for the above transactions. (10marks) (ii) Prepare an extract of the Financial Position showing the equity section as at 31st December 2016 (Total 17 Baust SOLU