A company was formed on 1 March 2018 with an authorized capital of OMR 10 million divided into common stock of OMR o.400 each. The company came up with an Initial Public Offer - IPO on 15th March 2018 by issuing 5,000,000 equity shares at OMR 0.400 each at par which was fully subscribed. The company then issued 3,000,000o more shares at OMR 0.800 each on 31 July 2019 which was fully subscribed. You are required to show the journal entry passed to record the transactions above. Also show how it will appear in the Statement of Financial Position. Assume Cash at Bank to before the IPO for year 2018 RO 50,000 and for the year 2019 to be RO 150,000.
A company was formed on 1 March 2018 with an authorized capital of OMR 10 million divided into common stock of OMR o.400 each. The company came up with an Initial Public Offer - IPO on 15th March 2018 by issuing 5,000,000 equity shares at OMR 0.400 each at par which was fully subscribed. The company then issued 3,000,000o more shares at OMR 0.800 each on 31 July 2019 which was fully subscribed. You are required to show the journal entry passed to record the transactions above. Also show how it will appear in the Statement of Financial Position. Assume Cash at Bank to before the IPO for year 2018 RO 50,000 and for the year 2019 to be RO 150,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
plz solve???
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education