Subject - account Please help me. Thankyou. Question 1Tetra (Pty) Ltd was incorporated during 2022:Preliminary costs (legal costs incurred in connection with thestart-up of the company) of R10 000 were paid on 2 January2022.2 000 ordinary no par value shares were issued at R100 eachon 5 January 2022.Share issue costs of R2 000 were paid on 5 January 2022.On 15 January 2022, 500 of these shares were converted into12% preference share equityThe draft statement of comprehensive income for 2022,before processing any adjustments for the above transactions,reflected total comprehensive income for 2022 of R120 000(components of other comprehensive income: R O).Required:1.1 Process journals to account for the preliminary costs, shareissue and the related share issue costs.1.2 Disclose this in the statement of changes in equity for theyear ended 31 December 2022.1.3 Show your calculations.

The preliminary costs and the related share issue costs are recorded as an expense for the period.…

Question 1 Tetra (Pty) Ltd was incorporated during 2022: Preliminary costs (legal costs incurred in connection with the start-up of the company) of R10 000 were paid on 2 January 2022. 2 000 ordinary no par value shares were issued at R100 each on 5 January 2022.

Question 1 Tetra (Pty) Ltd was incorporated during 2022: Preliminary costs (legal costs incurred in connection with the start-up of the company) of R10 000 were paid on 2 January 2022. 2 000 ordinary no par value shares were issued at R100 each on 5 January 2022.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 27CE: Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common...

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