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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On February 3, Year 1, Teel Corporation enters into a subscription contract with several subscribers for 7,000 shares of $5 par common stock at a price of $15 per share. The contract requires a down payment of 25%, with the remaining balance to be paid on May 3, Year 1. The stock will be issued to each subscriber upon full payment. Required: Prepare journal entries to record the following: 1. The February 3 receipt of the down payment and signing of the contract.
What are the journal entries for each transaction
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Required: Prepare the journal entries to record above transactions.
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What is the journal entry for the authorization to issue shares?
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required: please answer this question by preparing the general journal entry to record the above transaction. I need the full answers . I am a new student in Accounting.
Pheonix Limited made an offer to the public via a prospectus of 1,000,000 shares with an issue price of $1.00 per share. The shares were payable as $0.50 on application and a further $0.20 on allotment and $0.30 on call. Applications closed on 1 March 2020 and 1,500,000 applications were received (an oversubscription of 500,000 shares). Allotment was made on 20 March 2020. The company allotted 1,000,000 shares and the excess application monies were retained against allotment and call amounts. The call money was due on 1 October 2020. All monies to be paid have been received on time except 100,000 shareholders who could not pay the call money. These 100,000 shares were forfeited by the management on 20 November 2020. Prepare the journal entries to record the above.
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