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ABC issued a prospectus for 100,000 $5 shares on 1 January 2016. •The prospectus required payment of $3 on application and $2 in one years time. •The company received applications for a total of 125,000 shares – these applications were received throughout the month of January. •On 31 January 2016 ABC issued 100,000 shares. Required: Prepare the journal entries to account for the issue of shares assuming the excess money was offset against the call due in one years time. Please explain the process and dont give answers in image thnx

ABC issued a prospectus for 100,000 $5 shares on 1 January 2016. •The prospectus required payment of $3 on application and $2 in one years time. •The company received applications for a total of 125,000 shares – these applications were received throughout the month of January. •On 31 January 2016 ABC issued 100,000 shares. Required: Prepare the journal entries to account for the issue of shares assuming the excess money was offset against the call due in one years time. Please explain the process and dont give answers in image thnx

FINANCIAL ACCOUNTING
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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•ABC issued a prospectus for 100,000 $5 shares on 1 January 2016.

•The prospectus required payment of $3 on application and $2 in one years time.

•The company received applications for a total of 125,000 shares – these applications were received throughout the month of January.

•On 31 January 2016 ABC issued 100,000 shares.

Required:

Prepare the journal entries to account for the issue of shares assuming the excess money was offset against the call due in one years time.

Please explain the process and dont give answers in image thnx

 

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