Covid 21 Company was formed on 1 January 2021 with an authorized capital of OMR 800,000 divided into common stock of OMR 0.600 each. During the year, the business came up with an Initial Public Offer (IPO) of issuing 500,000 equity shares at OMR 0.900 each. The IPO is oversubscribed by 4 times and the company rejected 1/4th applications and for remaining made a pro-rata allotment of 2: 1. By using these data, show the total number of shares will be used for allotment by using pro rata basis. a. 4,000,000 b. 800,000 c. 5,000,000 d. 1,500,000

Covid 21 Company was formed on 1 January 2021 with an authorized capital of OMR 800,000 divided into common stock of OMR 0.600 each. During the year, the business came up with an Initial Public Offer (IPO) of issuing 500,000 equity shares at OMR 0.900 each. The IPO is oversubscribed by 4 times and the company rejected 1/4th applications and for remaining made a pro-rata allotment of 2: 1. By using these data, show the total number of shares will be used for allotment by using pro rata basis. a. 4,000,000 b. 800,000 c. 5,000,000 d. 1,500,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 9EB: Vishnu Company is authorized to issue 500,000 shares of $2 par value common stock. In conjunction...

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Vishnu Company is authorized to issue 500,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Apr. 10, issued 1,000 shares of stock for legal services valued at $15,000. Journalize the transaction.
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