110.209 INTERMEDIATE FINANCIAL ACCOUNTING
ASSIGNMENT 2: Report and Spreadsheet Excercise
Due 12 Midday NZ time on 6 May 2024
Section A -Company Equity
(Section A is marked out of 100 and contributes 7.5 marks to Assignment 2)
On 30 June 2023, the equity accounts of Mega Ltd consisted of the following:
300 000 ordinary shares, issued at $3 each, fully paid
100,000, 5% cumulative preference shares, issued at $4 paid to $2
Options (200,000 at 10c each)
General reserve
Additional information
5,000 was paid.
The directors made the final call on $2 on the preference shares.
Call monies were received for all preference shares except for 200
shares.
The directors decided to forfeit 200 preference shares for non-payment
of the call. The forfeited amounts will neither be refunded to
shareholders nor reissued.
The directors announced an interim dividend of 10c per ordinary share
payable in cash on 1 February.
The holders of 15,000 options applied to purchase shares. All monies
were sent with the applications. The shares were duly issued.
The directors decided to use the general reserve to fund the payment
of 40,000 bonus shares, which being issued at $2 per share.
Required
Prepare general journal entries to record the above transactions during the year ending 30 June
2024 (Use the spreadsheet answer template provided in the Assignment 2 files folder on
stream to complete section A of Assignment 2).
(100 marks)