Prepare the closing entries at year-end

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Reference no: EM133977997

Problem

On 10 July 2025, OceanWave Ltd made a public offer of 750 000 ordinary shares at an issue price of R15 each. The issue was fully underwritten by SA Capitec Bank.

By the closing date of 5 August 2025, applications received from the public amounted to 500 000 shares. Of these applicants, 30% were non-South African residents.

The underwriter charged a 3% commission on the total value of the issue. In addition, the company incurred share issue expenses (legal and marketing fees) of R100 000, which were paid in the following financial year. Get the instant assignment help.

On 30 September 2025, at the company's Annual General Meeting (AGM), a Class A dividend of R1,50 per share was declared, payable to all shareholders holding Class A shares.

Task

I. Record the above transactions in the general journal of OceanWave Ltd.
II. Prepare the closing entries at year-end.

Reference no: EM133977997

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