On 1 Feb 2021, a prospectus was issued offering 300,000 ordinary shares at an issue price...
On 1 Feb 2021, a prospectus was issued offering 300,000 ordinary shares at an issue price of $6 per share, payable $2 on application, 2$ on allotment, and $2 on a final call. The closing date for application was 7 Feb. The issue was underwritten at a commission of $500.
On 7 Feb, applications were received for 350,000 shares by this date.
On 8 Feb, the shares were allotted, with the oversubscription being refunded to unsuccessful applicants. The underwriting commission was paid.
All allotment money was received by 28 Feb.
On 1 March, the company made the call for the remaining $2 per share. The company received $580,000 call money by the due date (31 March).
2021
1
Feb
7 Feb
8 Feb
28 Feb
1 March
31 March
Prepare general journal entries to record the above transactions
Calculate the amount of share capital in the statement of financial position. ( Show all workings)
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On 1 Feb 2021, a prospectus was issued offering 300,000 ordinary
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On 1 July 2020 Jenny Ltd issued a prospectus to the public offering 15 million shares...
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Accounting for share capital On 1 January 2019, Funland Ltd was registered and issued a prospectus,...
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On 1 August 2016, NBS Ltd was incorporated and a prospectus was issued inviting applications for...
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On 1 May 2020, Chosen One Ltd issued a prospectus, inviting applications for ordinary shares. One...
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Why do we need to use call in advance here? and where is the 20000 x...
Why do we need to use call in advance here? and where is the
20000 x 2 call in advance from? Thank you.
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July 1 The company decided that 1,500,000 ordinary shares were to be offered to the public at an issue price of $3, payable as follows: $1.50 on application (due 1 August) $0.50 on allot...
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• 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...
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On 4 July 2019, Smith Ltd issued a prospectus offering 300,000 ordinary shares at an issue price of $4.00 each, payable $2.00 on application and $2.00 on allotment. Applications closed on 1 August 2019 with the company having received applications for 330,000 shares. The shares were allotted on 15 August 2019, with the over- subscription amount being refunded to unsuccessful applicants. All allotment money was received by 31 August 2019. Following the allotment on 15 August 2019, the amount transferred...
Why do we need to use call in advance here? and where is the
20000 x 2 call in advance from? Thank you.
Exercise 9.4 Share issue with oversubscription (Adapted). On July 2019, Denman Ltd issued a prospectus offering 160 000 of its ordinary shares payable $1 on application, $1 on allotment and $2 to be called as and when required. When applications closed on 23 July, applications had been received for 240 000 shares, including one applicant for 20...
• 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...
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