During 2012 the following selected transactions affecting shareholders' equity occurred for Italy Company Ltd: Invited applications for 25 000 company shares. The shares were to be issued at $60 per share, payable $20 on application and $30 on allotment 1 Feb: and $10 on call By 25 February, applications for 26 000 shares had been received. Directors resolved to allot the shares, with excess application money to be 5 Mar: applied to allotment. 31 Allotment monies were received in full. Mar: 25 Directors make a call on shareholders for the remaining $10. Apr: 30 Calls are received from all shareholders Мay: Directors declare a dividend of $1 per share, to shareholders of record on 1 July: 1 August, payable on 1 September. Required: Give the journal entries for each of the transactions.

During 2012 the following selected transactions affecting shareholders' equity occurred for Italy Company Ltd: Invited applications for 25 000 company shares. The shares were to be issued at $60 per share, payable $20 on application and $30 on allotment 1 Feb: and $10 on call By 25 February, applications for 26 000 shares had been received. Directors resolved to allot the shares, with excess application money to be 5 Mar: applied to allotment. 31 Allotment monies were received in full. Mar: 25 Directors make a call on shareholders for the remaining $10. Apr: 30 Calls are received from all shareholders Мay: Directors declare a dividend of $1 per share, to shareholders of record on 1 July: 1 August, payable on 1 September. Required: Give the journal entries for each of the transactions.

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

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