On 1 July 2021, Sydney Ltd issued a prospectus inviting applications for 400,000 ordinary shares, at an issue price of $7, payable $2.00 on application, $3 on allotment, and $2 on future call(s), dates to be determined by the directors. By 1 September 2021, applications were received for 420,000 shares with $2 paid per share. On 6 September 2021, the directors allotted 400,000 shares. Refunds were made to oversubscribed applicants. Share issue costs of $14,400 were also paid on the same date. All the allotment money was received by 1 October. On 1 December 2021, a final call for $2 was made. 380,000 shares call money were received by 4 January 2022. 0n 15 January 2021, all the shareholders who failed to pay the final call money Required: Prepare journal entries to record the above transactions (explanations are not required).

On 1 July 2021, Sydney Ltd issued a prospectus inviting applications for 400,000 ordinary shares, at an issue price of $7, payable $2.00 on application, $3 on allotment, and $2 on future call(s), dates to be determined by the directors. By 1 September 2021, applications were received for 420,000 shares with $2 paid per share. On 6 September 2021, the directors allotted 400,000 shares. Refunds were made to oversubscribed applicants. Share issue costs of $14,400 were also paid on the same date. All the allotment money was received by 1 October. On 1 December 2021, a final call for $2 was made. 380,000 shares call money were received by 4 January 2022. 0n 15 January 2021, all the shareholders who failed to pay the final call money Required: Prepare journal entries to record the above transactions (explanations are not required).

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 10P

See similar textbooks

Similar questions

On 1 July 2020, Albany Ltd issued a prospectus inviting applications for 600,000 ordinary shares, at an issue price of $7, payable $2.00 on application, $3 on allotment, and $2 on future call(s), dates to be determined by the directors. By 1 September 2020, applications were received for 620,000 shares with $2 paid per share. On 6 September 2021, the directors allotted 600,000 shares. Refunds were made to oversubscribed applicants. Share issue costs of $12,400 were also paid on the same date. All the allotment money was received by 1 October. On 1 February 2021, a final call for $2 was made. 580,000 shares call money were received by 1 March 2021. Required: Prepare journal entries to record the above transactions.
On 1 April 2019, Toronto Berhad was incorporated and a prospectus was issued inviting applications for 100,000 shares, at an issue price of RM10, payable RM5 on application, RM2.50 on allotment and RM1.25 on each of two calls to be made at intervals of 4 months after the date of allotment. By 30 April, applications were received for 120,000 shares. On 3 May, the directors allotted 100,000 ordinary shares to the applicants in proportion to the number of shares for which applications had been made. The surplus application money was offset against the amount payable on allotment. The balance of the allotment money was received by 10 May. Legal costs of forming the company were RM1,300 and were paid on 11 May. Share issue costs of RM800 were also paid on the same date. The two calls were made on the dates stated in the prospectus, but the holders of 10,000 shares did not pay either call. In addition, a holder of another 5,000 shares did not pay the second call. On 10 March 2020, as…
n 1 July 2021, Sydney Ltd issued a prospectus inviting applications for 500,000 ordinary shares, at an issue price of $8, payable $2.00 on application, $4 on allotment, and $2 on future call(s), dates to be determined by the directors. By 1 September 2021, applications were received for 520,000 shares with $2 paid per share. On 6 September 2021, the directors allotted 500,000 shares. Refunds were made to oversubscribed applicants. Share issue costs of $12,400 were also paid on the same date. All the allotment money was received by 1 October. On 1 December 2021, a final call for $2 was made. 480,000 shares call money were received by 4 January 2022. Required: Prepare journal entries to record the above transactions (explanations are not required)
On 1 October 2018, Acacia Ltd issued a prospectus for applications for 200 000 ordinary shares to the public at an issue price of $7, payable $2.50 on application, $1.50 on allotment and the remaining $3 in future call(s) as determined by the directors. By 1 December applications had been received for 240,000 ordinary shares with $2.50 attached. At a directors’ meeting on 5 December, it was decided to reject applications for 40 000 shares and issue shares to the remaining applicants. Share issue costs of $4000 were paid on 5 December. All outstanding allotment money was received by the 1 January 2019. The first call for $3 was made on 1 February 2019 , except for 25,000 shares money received by 20 February. Required Prepare the journal entries to record the transactions of Acacia Ltd .
Southern Cross Ltd issued a prospectus for the issue of 150,000, $6 shares on 1 January 2022. The prospectus specified that $4 was payable on application, with the balance payable on the allotment. By 2 February 2022, the company received applications for a total of 170,000 shares. On 4 February 2022, Southern Cross Ltd allotted 150,000 shares. the Directors of Southern Cross Ltd decided to refund the money in relation to unsuccessful applications. All of the allotment money was received by 20 February 2022. Required: Prepare the journal entries to account for the issue of shares by Southern Cross Ltd.
1. On 1 April 2019, Magnolia Ltd was incorporated and a prospectus was issued inviting applications for 100 000 shares, at an issue price of $10, payable $5 on application, $2.50 on allotment and $1.25 on calls to be made after the date of allotment.By 30 April, applications were received for 120 000 shares. On 3 May, the directors allotted 100 000 ordinary shares to the applicants in proportion to the number of shares for which applications had been made. The surplus application money was offset against the amount payable on allotment. The balance of the allotment money was received by 10 May. Share issue costs of $800 were also paid on the same date.The calls were made on the dates stated in the prospectus, but the holders of 15 000 shares did not pay call.On 10 March 2017, as provided by the company’s constitution, the directors forfeited the 15 000 shares on which calls were unpaid. The constitution does not provide for refund of any balance in the forfeited shares account after…
H2O Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The terms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month of allotment. Applications are received for 36 million shares during July 2019. The directors allot 30 million shares on 15 August 2019. The shares were allotted on a first-come, first-serve basis. The directors refunded the application money for 6 million shares on 15 August 2019. The amounts payable on the allotment are due by 20 September 2019. By 20 September 2019, the holders of 5 million shares have failed to pay the amounts due on allotment. The directors forfeit the shares on 30 September 2019. The shares are resold on 15 October 2019 as fully paid. An amount of $1.90 per share is received. The remaining balance of forfeited shares were refunded on 20 October 2019. Please assist to provide the journal entries necessary to account for the above transactions and…
Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The terms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month ofallotment. Applications are received for 36 million shares during July 2019. The directors allot 30 million shares on 15 August 2019. The shares were allotted on a first-come, first-serve basis. The directors refunded the application money for 6 million shares on 15 August 2019. The amounts payable on the allotment are due by 20 September 2019. By 20 September 2019, the holders of 5 million shares have failed to pay the amounts due on allotment. The directors forfeit the shares on 30 September 2019. The shares are resold on 15 October 2019 as fully paid. An amount of $1.90 per share is received. The remaining balance of forfeited shares were refunded on 20 October 2019. Please answer the below: 1: Provide the journal entries necessary to account for the above transactions…
Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The terms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month of allotment. Applications are received for 36 million shares during July 2019. The directors allot 30 million shares on 15 August 2019. The shares were allotted on a first come, first serve basis. The directors refunded the application money for 6 million shares on 15 August, 2019. The amountspayable on allotment are due by 20 September 2019. By 20 September 2019 the holders of 5 million shares have failed to pay the amounts due onallotment. The directors forfeit the shares on 30 September 2019. The shares are resold on 15 October 2019 as fully paid. An amount of $1.90 per share is received. The remaining balance of forfeited shares were refunded on 20 October 2019. REQUIRED Provide the journal entries necessary to account for the above transactions and events.