16 Oct 2021: To assist with cashflow difficulties the company isued a prospectus inviting offers for 40000 options to acquire A ordinary share at a issue price of $2 per option, payable in full on application. Each option exercisable on 31 December 2021 allowed the holder to acquire one A ordinary share for $3. 31 Dec 2021: Offers wrer received for 30000 options and these were duly alloted. The holders of 25000 options exercised their options and 25000 A ordinary shares were alloted. The remaining time lapsed Required Prepare journal entries to record the following transaction in the records of Gold Ltd.(show all workings)
16 Oct 2021: To assist with cashflow difficulties the company isued a prospectus inviting offers for 40000 options to acquire A ordinary share at a issue price of $2 per option, payable in full on application. Each option exercisable on 31 December 2021 allowed the holder to acquire one A ordinary share for $3. 31 Dec 2021: Offers wrer received for 30000 options and these were duly alloted. The holders of 25000 options exercised their options and 25000 A ordinary shares were alloted. The remaining time lapsed Required Prepare journal entries to record the following transaction in the records of Gold Ltd.(show all workings)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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16 Oct 2021: To assist with cashflow difficulties the company isued a prospectus inviting offers for 40000 options to acquire A ordinary share at a issue price of $2 per option, payable in full on application. Each option exercisable on 31 December 2021 allowed the holder to acquire one A ordinary share for $3.
31 Dec 2021: Offers wrer received for 30000 options and these were duly alloted.
The holders of 25000 options exercised their options and 25000 A ordinary shares were alloted. The remaining time lapsed
Required
Prepare
Transcribed Image Text:The share capital of Gold Ltd on 30 June 2021 was:
Share capital:
200 000 'A' ordinary shares issued at $3 paid to $2.00
$400,000
100,000 'B' ordinary shares issued at $2, fully paid
$200,000
S600,000
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