Sintok Niaga Bhd issues 40,000 shares at RM1 each during the year ended 31 December 2019. The applications are received with full payment on October 31, 2019 for 100,000 shares. The shares are subsequently allotted on December 31, 2019 to the successful applicants, while unsuccessful applicants are refunded at the same date. Show the journal entries to record the transactions.
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- Sintok Niaga Bhd issues 40,000 shares at RM1 each during the year ended 31 December 2019. The applications are received with full payment on October 31, 2019 for 100,000 shares. The shares are subsequently allotted on December 31, 2019 to the successful applicants, while unsuccessful applicants are refunded at the same date. Show the journal entries to record the transactions. Maxwell had the following transactions pertaining to its ordinary shares during the first year of operations. Jan 10 Issued 80,000 shares for cash at RM6 per share. Mar 1 Issued 5,000 shares to lawyer in payment of a bill for RM40,000 for services rendered in helping the company to incorporate. July 1 Issued 30,000 shares for cash at RM8 per share. Sep 1 Issued 60,000 shares for cash at RM10 per share. REQUIRED: Prepare the journal entries to record the transactions.York Ltd. was registered on 1 July 2020. The next day, the directors issued a disclosure document inviting applicants for 700,000 ordinary shares with an issue price of $1. The shares were payable 20¢on application and 40¢ on allotment. By the end of July, the company had received exactly 700,000 applications, together with the correct application monies. The directors allotted these shares on 1 August. The correct allotment monies were received by the end of September. On 1 October 2020, the directors made a call of 25¢ per share. Call monies were due and payable by 31 October, and were received by then except in respect of one parcel of 10,000 shares. Required: Prepare journal entries with explanations to record the transactions above. Prepare an extract from the balance sheet as at 31 October 2020, showing owners’ equityLacoste Inc., was organized on January 2, 2019 with a total authorized capital of P 2,000,000, P 20 par value. Subsequently, incorporators subscribed for 25,000 shares at P 24. How much must be paid up upon subscription to comply with the requirement of the Securities and Exchange Commission?
- On 1 July 2021, Mel Ltd took control of the assets and liabilities of Syd Ltd. At this date the statement of financial position of Syd Ltd was as follows: Required Prepare the journal entries in the records of Mel Ltd at 1 July 2021 in each of the following situations, assuming the costs of issuing the shares by Mel Ltd cost $1600. Mel Ltd issued 80 000 shares having a fair value of $2.40 per share in exchange for the net assets of Syd Ltd Mel Ltd issued 80 000 shares having a fair value of $2.00 per share in exchange for the net assets of Syd Ltd. Mel Ltd acquired the shares of Syd Ltd. The agreement was that Mel Ltd would pay the shareholders of Syd Ltd one share in Mel Ltd for every two shares held in Syd Ltd plus $1 in cash for each share held in Syd Ltd. Shares in Mel Ltd have a fair value of $1.80 per share.First Point Ltd commences operations by issuing 1 million shares at a price of $1.40 per share, payable in full on application. Application monies are received on 31 July 2023 and the shares are allotted on 4 August 2023. The share issue is made as a result of an offer being made to the public. Provide the journal entries to account for the receipt of the application monies and the subsequent allotment of the shares.4. ABC Co. issued a prospectus for the issue of 900,000shares at $6 per shares on 1 January 2019. The prospectus specified that $3.50 was payable on application, a further $1.25 was payable on allotment and the final $1.25 was payable at call. On 31 January 2019 ABC issued 300,000 shares. On 31 May 2019, the company made the call for the outstanding balance of $1.25 per share. The call was payable by 30 June 2019. At 30 June 2019, the call on 30,000 shares remained unpaid.Instructions:b) The Share Capital that would appear in the Balance Sheet of ABC Co. (2marks)
- Shrek Inc., had issued subscriptions for common shares on March 1, 2020. 40% of the subscription was to be paid by the subscribers on April 1 and the balance on June 1. The company would thereafter issue the shares on June 15. On April 1, the company received the funds for the first instalment and prepared the following journal entry to record the transaction: DR Cash $446,400 CR Share Subscription Receivable $446,400 On June 1, 2,000 subscribers failed to pay the second instalment and their subscriptions were forfeited. The company received the funds due on the second instalment from the remaining subscribers and prepared the following journal entry to record the transaction: DR Cash $648,000 CR Share Subscription Receivable $648,000 For how many shares were subscriptions issued by Shrek on March 1, 2020? Select one: a.…Entity A invested in 222,000 shares of a listed company on 1 November 2019 at a cost of $4.25 per share. On 31 December 2019, the shares have a market value of $4.73. The shares are held for trading. The end of the reporting period is 31 December. REQUIRED: (1) Measure the gain or loss of remeasurement of the shares recognised in the Statement of Profit or Loss on 31 December 2019. (2) Measure the value of the shares recognised in the Statement of Financial Position on 31 December 2019.Select Ltd is registered with an authorised share capital of 300,000 ordinary shares of Ksh.1. The following trial balance was extracted from the books of the company on 31 March 2020, afterthe preparation of the tra ding асcount: Dr Kshs Kshs 200.000 Ordinary share capital, fully paid Land and buildings at cost Sundry debtors Fumiture and fittings at cost General expenses Sundry Creditors Stock at 31 March 2020 Bank Trading account: gross profit Office salaries and expenses Accumulated provision for depreciation on fumiture and fittings Share premium account Advertising and selling expenses Bad debts Provision for doubtful debts Profit andloss account Directors' fees 170.000 38.300 80.000 3.800 25.000 42.000 12.000 98.050 25.000 32.000 20.000 5.000 250 600 12.000 11.300 387,650 387,650 The following information is given: The provision for doubtful debtors is to be adjusted to Kshs 700. i. i. Depreciation is to be provided in respect of fumiture and fittings at 10% per annum on cost.…
- Tobias Limited received its registration certificate on 10 February 2020. The article 2 of the Memorandum of incorporation provides for an authorized share capital of R4 500 000 consisting of 3 000 000 ordinary shares and 1500 000, 8% non- redeemable preference shares. The board decided on a year end of 30 September. During March 2020, the directors entered the following transactions: • 5 March: 100 00o shares were issued to the company promoters and founders for R1 each. • 12 March: The public was invited to apply for 600 000 ordinary shares for R1.20 each and 200 000 preference shares for R1. The full issue price was payable with applications that closed on 25 April 2020. The entire issue was underwritten by FNB Securities Brokers Limited for a commission of 2% of the issue price. The company promoters and founders paid for their shares on 8 April 2020. The share applications from the public investors were as follows: 1 500 000 ordinary shares • 150 000 preference shares. On 30 April…“The N” Corporation is authorized to issue 100,000 ordinary shares, P17 par value. At the beginning of 2019, 18,000 ordinary shares were issued and outstanding. These shares had been issued at P24. During 2019, the company entered into the following transactions: Jan. 16 Issued 1,300 ordinary shares at P25 per share Mar. 21 Exchanged 12,000 ordinary shares for a building. The ordinary shares were selling at P27 per share. The building had a carrying amount of P412,000. Jul. 1 Accepted subscriptions to 1,000 ordinary shares at P28 per share. The contract called for 10% down payment with the balance due on December 1. Sept. 20 Sold 500 treasury shares with cost of P26 per share at P29 per share. Dec. 1 Collected the balance due on July 1 subscriptions and issued the shares. Compute for the total contributed capital for December 31, 2019.ABC Co. was organized on January 1, 2019, with an authorization of 1.200.000 ordinary shares with a par value of Rp6 per share. During 2019, the corporation had the capital transactions as provided below. ABC Co. used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of share premium as of December 31, 2019?