a) Lotus Company Ltd decided to issue 100 000 ordinary shares for $3.00 each, payable in instalments, 50c on application, $1.50 on allotment and the balance payable at the discretion of the company. Applications were received for 120 000 shares. The shares were allotted by the directors a week after the close of applications and refunds were made for 20 000 shares. Twelve months after the allotment monies had been received the directors made a call for the remaining $1 per share. i. What is the correct journal entry to record the full receipt of the allotment instalment is: ii. What is the correct journal entry to record the amount due to the company for the call instalment is:
a) Lotus Company Ltd decided to issue 100 000 ordinary shares for $3.00 each, payable in instalments, 50c on application, $1.50 on allotment and the balance payable at the discretion of the company. Applications were received for 120 000 shares. The shares were allotted by the directors a week after the close of applications and refunds were made for 20 000 shares. Twelve months after the allotment monies had been received the directors made a call for the remaining $1 per share. i. What is the correct journal entry to record the full receipt of the allotment instalment is: ii. What is the correct journal entry to record the amount due to the company for the call instalment is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer option 1 and 2
Transcribed Image Text:a) Lotus Company Ltd decided to issue 100 000 ordinary shares for $3.00 each, payable in
instalments, 50c on application, $1.50 on allotment and the balance payable at the
discretion of the company. Applications were received for 120 000 shares. The shares
were allotted by the directors a week after the close of applications and refunds were
made for 20 000 shares. Twelve months after the allotment monies had been received the
directors made a call for the remaining $1
per
share.
i.
What is the correct journal entry to record the full receipt of the allotment
instalment is:
ii.
What is the correct journal entry to record the amount due to the company for the
call instalment is:
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