23. ITC Ltd. invited applications for issuing 80,000 equity shares of 10 eachat a premium of 2 per share. The amount was payable as follows:On Application4 per shareOn AllotmentOn First & Final Call3 per share along with premiumBalance AmountApplications were received for 1,30,000 shares and pro-rata allotment wasmade on applications for 1,20,000 shares and the remaining applicationswere refused and letters of regret were sent to them.Nimisha, who was allotted 1,600 shares, failed to pay the allotment moneyand her shares were forfeited immediately after the allotment. Afterwardsthe final call was made and duly received.Of the forfeited shares, 800 shares were reissued as fully paid up for 7per share.Pass Journal entries for the above transactions by opening calls-in-arrearsaccount.SO6

Share capital is issued to the general public in order to raise fund by the public company. The…

Answered: 23. ITC Ltd. invited applications for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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BFAR Corp. was formed on June 1 with 100,000 authorized shares having a par value of P20. The following transactions occurred: • June 15: Issued 827 shares at P22 per share June 20: Received subscriptions for 1,162 shares at P23 per share with 25% down payment • June 25: Received subscriptions for 410 shares at P26 per share with 30% down payment June 30: Collected the June 20 subscription in full How much is the balance of the Share Capital account as of June 30? ● .
Please answer asap! UPVOTE will be given! No long explanation needed. BFAR Corp. was authorized to issue 300,000 ₱7 par value ordinary shares. It received subscriptions for 55,000 ordinary shares at ₱9 per share and collected half of this subscription. How much is the balance of the Subscribed Share Capital account?
Kk.348. Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1 par value. During its first year, the following selected transactions were completed: Issued 5,300 shares of common stock for cash at $23 per share. Issued 1,300 shares of common stock for cash at $26 per share. Required: Complete the table below, indicating the account, amount, and direction of the effect for the above transactions. (Enter any decreases to account balances with a
Q8. A Co. invited applications for 20,000 equity shares of 10 each payable as follows: On application 5 On allotment ₹3 On call ₹2 Applications were received for 80,000 shares. It was decided (i) to refuse allotment to the applicants for 25,000 shares. (ii) to allot 50% to Mr. M who had applied for 20,000 shares. (iii) to allot in full to Mr. N who had applied for 5,000 shares. (iv) to allot the balance of the available shares on pro rata basis among the other applicants. Excess application money to be adjusted towards allotment only. Prepare Cash Book and Journal. Prepare a Balance Sheet showing share capital. Prepare Notes to Accounts.
30. During its first year of operations, Victory, Inc. entered into the following transactions relating to shareholders' equity. Victory's articles of incorporation authorized the issue of 240,000 ordinary shares, P10 par per share, and 30,000 preference shares, P50 par per share. > March 14- Sold 50,000 ordinary shares for P100 per share. > March 15- Issued 20,000 ordinary shares to lawyers in exchange for legal services amounting to P 300,000. > March 15- Sold 35,000 of its ordinary shares and 10,000 preference shares for P6,000,000. Fair value of the ordinary share is P100. > November 20 – Issued 1,900 of its ordinary shares in exchange for equipment for which the cash price was known to be P185,000. Based on the preceding information, determine the total shareholders' equity.
Please answer asap! UPVOTE will be given! No long explanation needed. ERGO Corp. was authorized to issue 200,000 ordinary shares with ₱50 par value. The company had the following chronological transactions during the year: Issued 80,000 shares at ₱60 per share Received subscription for 24,000 shares at par Re-acquired 6,000 treasury shares at ₱65 per share Re-issued 2,400 treasury shares at ₱30 per share How many shares are outstanding at year-end?
In 2007, Xero Ltd. offered a subscription of 15 million shares at an offer price of $1.00 per share with the ability to accept oversubscriptions of up to $3 million. The prospectus detailed the requirement that all applications must be accompanied by payment in full for the total number of shares applied for and stated that application monies will be banked upon receipt into a designated bank account and held on trust pending the allocation of shares. Required: Assuming all 18 million shares were applied for, prepare the journal entry to record the receipt of application monies. Apart from recording a cash inflow, explain whether Xero should also record another asset, a liability, revenue or an expense upon collection of application monies, and explain why.
0.5 On May 1, 2017 Sajid Lu offered 20,000 ordinitzes Rs. 10 at Rs.10 cach to public. On June 25, the banker of company infelnied that apphenion for 18,000 sharcs hage been received with application money. On July 31 , the company issued 18,000 shares to public and as per agreement the underwriter subscribed the balance shares. Required: Regord the above transactiops in general journal. 0.6 On March 18, 2017 Haslim Ltd offered 80,000 ordimary shares of Rs.10 at Rs.10 cach to public. On April 26, the banker of company informed that applicatioh for 3,000 shares have been received with application money. On December 28, the companyssued 73,000 shares to public and as per agreement the underwriter subscribed the balance shares. Required: Record the above transactions in general journal.
Green Ltd invited applications for 10,000 shares of Rs.100 each at a discount of 6% payable as follows; on application - Rs.25 On allotment - Rs.34 and on first and final call Rs.35. The applications received were for 9,000 shares and all of these were accepted. All money due were received except the first and final call on 100 shares which were forfeited. 50 shares were reissued @ Rs.90 as fully paid. Pass journal entries in the books of Green Ltd.
(19) Miller Corporation issued 7,000 shares of its $5 par value common stock in payments for attorney services billed at $70,000. Miller Corporation's stock has been actively trading at $10 per share. The journal entry for this transaction would include a credit to: A. Legal expenses for $70,000 B. Common stock for $70,000 C. Paid - in Capital in Excess of Par-Common for $70,000. D. Paid - in Capital in Excess of Par-Common for $35,000.
E14-4 Issuing shares payable by instalments [10–15 min] Riverside Ltd is issuing shares payable by instalments. It completed the following transactions: Received an application for 2000 ordinary shares with a total issue price of $10 per share. The applicant paid one-quarter of the total issue price. Allotted the 2000 shares and collected a further half of the total issue price. Made a call on the shares and collected the balance still due. May 3 May 18 Aug 3 Requirement Record these transactions in the general journal. Explanations aren't required.
Jan 1 A prospectus was issued inviting applications for 200, 000 ordinary shares at an issue price of $10, with $6 payable on application, $2 Payable on the allotment and the balance payable on future call as determined by the directors. Jan 31 Applications closed with the ordinary share issue oversubscribed by 50,000. Feb 1 All shares were allotted on a pro- rata basis, and application money was refunded to unsuccessful applicants. Feb 15 Share issue costs of $15000 were paid. All outstanding Allotment money was received. May 25 The final call was made with money received by 10th June. June 10 The call money was received from holders of 180,000 ordinary shares. June 15 The shares on which call money was not received were forfeited. June 25 The forfeited shares were placed with a financial Institution and paid to $10 on a payment of $8.60. The cash was received from the financial institution, and any balance in the forfeited shares account was returned to the former shareholders.…

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