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A company was formed on 1 March 2018 with an authorized capital of OMR 10 million divided into common stock of OMR o.400 each. The company came up with an Initial Public Offer - IPO on 15th March 2018 by issuing 5,000,000 equity shares at OMR 0.400 each at par which was fully subscribed. The company then issued 3,000,000o more shares at OMR 0.800 each on 31 July 2019 which was fully subscribed. You are required to show the journal entry passed to record the transactions above. Also show how it will appear in the Statement of Financial Position. Assume Cash at Bank to before the IPO for year 2018 RO 50,000 and for the year 2019 to be RO 150,000.

A company was formed on 1 March 2018 with an authorized capital of OMR 10 million divided into common stock of OMR o.400 each. The company came up with an Initial Public Offer - IPO on 15th March 2018 by issuing 5,000,000 equity shares at OMR 0.400 each at par which was fully subscribed. The company then issued 3,000,000o more shares at OMR 0.800 each on 31 July 2019 which was fully subscribed. You are required to show the journal entry passed to record the transactions above. Also show how it will appear in the Statement of Financial Position. Assume Cash at Bank to before the IPO for year 2018 RO 50,000 and for the year 2019 to be RO 150,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A company was formed on 1 March 2018 with an authorized capital of OMR 10 million divided into common stock of OMR o.400 each. The company came up with an Initial Public Offer - IPO on 15th March 2018 by issuing 5,000,000 equity shares at OMR 0.400 each at par which was fully subscribed. The company then issued 3,000,000o more shares at OMR 0.800 each on 31 July 2019 which was fully subscribed. You are required to show the journal entry passed to record the transactions above. Also show how it will appear in the Statement of Financial Position. Assume Cash at Bank to before the IPO for year 2018 RO 50,000 and for the year 2019 to be RO 150,000.
Transcribed Image Text:A company was formed on 1 March 2018 with an authorized capital of OMR 10 million divided into common stock of OMR o.400 each. The company came up with an Initial Public Offer - IPO on 15th March 2018 by issuing 5,000,000 equity shares at OMR 0.400 each at par which was fully subscribed. The company then issued 3,000,000o more shares at OMR 0.800 each on 31 July 2019 which was fully subscribed. You are required to show the journal entry passed to record the transactions above. Also show how it will appear in the Statement of Financial Position. Assume Cash at Bank to before the IPO for year 2018 RO 50,000 and for the year 2019 to be RO 150,000.
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