1 Share Capital Preference Dr 375 000 Retained Earnings Dr 15 000 Shareholders

1 share capital preference dr 375 000 retained

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1. Share Capital - Preference Dr 375 000 Retained Earnings Dr 15 000 Shareholders’ Redemption Cr 390 000 (Redemption of 150 000 shares at price of $2.60) Shareholders’ Redemption Dr 390 000 Cash Cr 390 000 (Payment on redemption) Retained Earnings Dr 375 000 Share Capital - Ordinary Cr 375 000 (Transfer against retained earnings) 2. Cash Trust Dr 240 000 Application - Ordinary Cr 240 000 (Money received on application) Application - Ordinary Dr 240 000 Share Capital - Ordinary Cr 240 000 (Allotment of 240 000 shares) Cash Dr 240 000 Cash Trust Cr 240 000 (Transfer on allotment) Preference Share Liability Dr 225 000 Redemption Premium Expense Dr 15 000 Shareholders’ Redemption Cr 240 000 (Redemption of 150 000 shares at a price of $1.60) Shareholders’ Redemption Dr 240 000 Cash Cr 240 000 (Payment on redemption) 3. Debentures Dr 1 000 000 Cash Cr 960 000 Income on Redemption of Debentures Cr 40 000 (Purchase of 20,000 $50 debentures for $48 each on stock exchange) 4. Cash Dr 37 500 Share Options Cr 37 500 (Issue of 50 000 share options at 75c each)
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7 5. Cash Dr 144 000 Share Capital – Ordinary Cr 144 000 (Issue of 40 000 ordinary shares as a result of 40 000 options exercised) Share Options Dr 37 500 Share Capital – Ordinary Cr 30 000 Lapsed Options Reserve Cr 7 500 (Write-off of options exercised, and lapsed) 6. Cash Trust Dr 4 500 000 Application - Debentures Cr 4 500 000 (Cash received as $25 per debenture Application money on 180 000 debentures) Application - Debentures Dr 3 750 000 Debentures Cr 3 750 000 (Issue of 150 000 $25 debentures) Cash Dr 3 750 000 Application - Debentures Dr 750 000 Cash Trust Cr 4 500 000 (Transfer on allotment and refund to unsuccessful applicants) 7. Convertible Note Liability Dr 25 000 Convertible Noteholders Cr 25 000 (Transfer to noteholders account) Convertible Noteholders Dr 25 000 Cash Cr 20 000 Share Capital Cr 5 000 (Conversion of 5,000 of convertible notes by cash payment and issue of 5 000 shares issued for $1 and paid to 75c each: fair value of notes redeemed) 8. Cash Dr 40 000 Share Capital Cr 40 000 (1 for 4 rights issue of 25 000 shares at $1.60)
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