Homework Answers
Solution
17. Call in advance. Money received before the call is made is called call in advance.
18. Call in advance is shown under balance sheet as current liabilities.
19. Call in advance money is adjusted when the actual call is made.
Journal entry:
Call in advance money a/c ..Dr xx
To Equity share call A/c.
20. Doesn't effect liquidity/cash postion of the company
21. Call in arrears
22. Call in arrears are shown as deduction from called up capital in balance sheet.
23. Dillusion/reduction in Dividend per share
24. Shar holder can ignore his rights or sell the rights to someone
25. Forfeiture of shares
26. After. After the call have been in arrears
27. If he sells or transfer share during a restricted period
28. Discount. Forfeited share are generally issued at discount.
29. Buy back of shares is done to pay investor the money back and reduces dividend burden in company.
30. It involves huge outflow of cash
Add Answer to:
17. If an investor has paid extra money during application and allotment, before a call is...
February 8 As provided for in the constitution, the ordinary shares on which the call was unpaid were forfeited. The constitution in relation to this class of shares further provided for any surpl...
February 8 As provided for in the constitution, the ordinary shares on which the call was unpaid were forfeited. The constitution in relation to this class of shares further provided for any surplus on resale, after satisfaction of unpaid calls and associated costs, to be returned to the former shareholders. 100,000 “A” ordinary shares, issued at $2, called to $1.80 $ 180,000 Less: Calls in Arrears - “A” ordinary shares $ (3,500) 120,000 “B” ordinary shares, issued at $1.50, called...
• Prepare the general journal entries to record the above independent scenarios. • Narrations to general journal entries must be provided. • Complete and detailed workings/calculations must be shown....
• Prepare the general journal entries to record the above
independent scenarios.
• Narrations to general journal entries must be provided.
• Complete and detailed workings/calculations must be shown.
• Absence of workings/calculations may lead to zero marks
allocated to the particular general journal entry, despite the fact
that the entry might be correct!
PLEASE answer scenario5 to 7 thank you very much
The directors issued a prospectus offering 40,000 ordinary shares at an issue price of $2.80, payable $2...
Jenny Ltd’s equity at 30 June 2019 was as follows: 200 000 ordinary shares, issued at...
Jenny Ltd’s equity at 30 June 2019 was as follows: 200 000 ordinary shares, issued at $3.20, fully paid 250 000 ordinary shares, issued at $4, called to $2.40 180 000 redeemable preference shares, issued at $1, fully paid Calls in advance (5 000 ordinary shares) Share issue costs General reserve Retained earnings $640 000 600 000 180 000 8 000 (7 000) 60 000 310 000 The following events occurred during the year ended 30 June 2019: 2018 July...
The following information applies to the questions displayed below) National League Gear has two classes of...
The following information applies to the questions displayed below) National League Gear has two classes of stock authorized: 4%, $20 par preferred, and $5 par value common. The following transactions affect stockholders' equity during 2018, National League's first year of operations: February 2 Issue 11 million shares of common stock for $26 per share. February 4 Issue 510,000 shares of preferred stock for $23 per share. June 15 Repurchase 110,000 shares of its own common stock for $21 per share....
Case No.1 Oman Oil Limited issued 80,000 shares of OMR 10 each, at par payable as...
Case No.1
Oman Oil Limited issued 80,000 shares of OMR 10 each, at par
payable as follows; on application OMR 3; on allotment OMR 2 and on
first call OMR 2 and final call OMR 2. All the shares were
subscribed for and the company received all the money due, with the
exception of the allotment and call money on 2,500 shares. These
shares were forfeited and re-issued at OMR 8 per share.
Question No. 1
i) You are required...
Suppose that a bank has loaned money to two businesses: a trustworthy computer manufacturer and a...
Suppose that a bank has loaned money to two businesses: a trustworthy computer manufacturer and a risky mining venture. Unfortunately, the mining venture fails, and the mining firm goes bankrupt. The bank has no insurance for this situation. Now, on its balance sheet, the bank has more liabilities than assets. What is this situation called, and what is the result of this situation? Illiquidity. Shares of the bank are not traded as often on a stock exchange. O Bank run....
Finance
Karim plc and Roshan plc are quoted companies. The following figures are from their currentbalance sheets.Karim plc Roshan plcGHC, 000 GHC, 000Ordinary share capitalAuthorized: 2,000,000 shares of 50p 1,000 1,000Issued: 1,000,000 shares of 50p 500 500Reserves 1,750 150SHAREHOLDERS FUNDS 2,250 6506% Irredeemable debentures - 2,500Both companies earn an annual profit, before charging debenture interest, of GHC 500,000 whichis expected to remain constant for the indefinite future. The profits of both companies beforecharging debenture interest, are generally regarded as being subject...
The Clifford Corporation has announced a rights offer to raise $48 million for a new jounal,...
The Clifford Corporation has announced a rights offer to raise $48 million for a new jounal, the Journal of Financial Excess. This journal will review potential articles after the author pays a nonrefundable reviewing fee of $3.000 per page. The stock currently sells for $24 per share and there are 3.6 million shares outstanding. a. What is the maximum possible subscription price? What is the minimum? (Do not round Intermediate calculations. Leave no cells blank - be certain to enter...
The Clifford Corporation has announced a rights offer to raise $20 million for a new journal,...
The Clifford Corporation has announced a rights offer to raise $20 million for a new journal, the Journal of Financial Excess. This journal will review potential articles after the author pays a nonrefundable reviewing fee of $4,000 per page. The stock currently sells for $60 per share and there are 3.1 million shares outstanding. a. What is the maximum possible subscription price? What is the minimum? (Do not round intermediate calculations. Leave no cells blank - be certain to enter...
these last 3 pics from stage 1 and 2 has information needed to answer stage 3. thanks ZHL held its a...
these last 3 pics from stage 1 and 2 has information needed to
answer stage 3. thanks
ZHL held its annual general meeting as intended on the 10th October 20X3 and the final dividend determined in the previous fi nal I year was approved, dedared and On the 30th October 2003 60% of ordinary shareholders advised ZHL that they elected to take shares instead of dividends under the terms of the DRP conditions previously advised. The 60% was evenly spread...
• Prepare the general journal entries to record the above
independent scenarios.
• Narrations to general journal entries must be provided.
• Complete and detailed workings/calculations must be shown.
• Absence of workings/calculations may lead to zero marks
allocated to the particular general journal entry, despite the fact
that the entry might be correct!
PLEASE answer scenario5 to 7 thank you very much
The directors issued a prospectus offering 40,000 ordinary shares at an issue price of $2.80, payable $2...
The following information applies to the questions displayed below) National League Gear has two classes of stock authorized: 4%, $20 par preferred, and $5 par value common. The following transactions affect stockholders' equity during 2018, National League's first year of operations: February 2 Issue 11 million shares of common stock for $26 per share. February 4 Issue 510,000 shares of preferred stock for $23 per share. June 15 Repurchase 110,000 shares of its own common stock for $21 per share....
Case No.1
Oman Oil Limited issued 80,000 shares of OMR 10 each, at par
payable as follows; on application OMR 3; on allotment OMR 2 and on
first call OMR 2 and final call OMR 2. All the shares were
subscribed for and the company received all the money due, with the
exception of the allotment and call money on 2,500 shares. These
shares were forfeited and re-issued at OMR 8 per share.
Question No. 1
i) You are required...
Suppose that a bank has loaned money to two businesses: a trustworthy computer manufacturer and a risky mining venture. Unfortunately, the mining venture fails, and the mining firm goes bankrupt. The bank has no insurance for this situation. Now, on its balance sheet, the bank has more liabilities than assets. What is this situation called, and what is the result of this situation? Illiquidity. Shares of the bank are not traded as often on a stock exchange. O Bank run....
The Clifford Corporation has announced a rights offer to raise $48 million for a new jounal, the Journal of Financial Excess. This journal will review potential articles after the author pays a nonrefundable reviewing fee of $3.000 per page. The stock currently sells for $24 per share and there are 3.6 million shares outstanding. a. What is the maximum possible subscription price? What is the minimum? (Do not round Intermediate calculations. Leave no cells blank - be certain to enter...
The Clifford Corporation has announced a rights offer to raise $20 million for a new journal, the Journal of Financial Excess. This journal will review potential articles after the author pays a nonrefundable reviewing fee of $4,000 per page. The stock currently sells for $60 per share and there are 3.1 million shares outstanding. a. What is the maximum possible subscription price? What is the minimum? (Do not round intermediate calculations. Leave no cells blank - be certain to enter...
these last 3 pics from stage 1 and 2 has information needed to
answer stage 3. thanks
ZHL held its annual general meeting as intended on the 10th October 20X3 and the final dividend determined in the previous fi nal I year was approved, dedared and On the 30th October 2003 60% of ordinary shareholders advised ZHL that they elected to take shares instead of dividends under the terms of the DRP conditions previously advised. The 60% was evenly spread...
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