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
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

•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

 

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education