Calculate the total contributed capital immediately

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Reference no: EM133144651

Question - Grocer Grocey Bhd has in issue 1,000,000 ordinary shares issued at RM3.50 per share and 500,000 redeemable preference shares issued at RM1.50 per share. The preference shares are redeemed at RM1.50 out of the capital. For the purpose of the redemption, Grocer Grocey Bhd also has sufficient retained profits but not revaluation reserves.

Required -

a) Calculate the total contributed capital immediately after the issuance of shares.

b) Prepare the journal entry to record

i) the issuance of shares. (Assume Grocer Grocey received cash).

ii) the redemption of the preference shares.

Reference no: EM133144651

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