Alpha Ltd was registered as a corporation on 1 July 2016. On this day a prospectus was issued calling for applications for 750 000 shares at an issue price of $3. The shares were payable $1 on application, $1 on allotment and $1 due in one year’s time. Applications closed on 1 August 2016 with the receipt by the company of $760 000, being for 760 000 shares. The shares were allotted on 15 August, with the $10 000 oversubscription being refunded to unsuccessful applicants. All allotment money was received by 31 August 2016. On 1 August 2017, a call was made for the remaining $1 per share still owing. All call money except that payable on 20 000 shares was received by 30 September 2017. Required Journal entries recording the events given in the question
Alpha Ltd was registered as a corporation on 1 July 2016. On this day a prospectus was issued
calling for applications for 750 000 shares at an issue price of $3. The shares were payable $1 on
application, $1 on allotment and $1 due in one year’s time.
Applications closed on 1 August 2016 with the receipt by the company of $760 000, being for
760 000 shares. The shares were allotted on 15 August, with the $10 000 oversubscription being
refunded to unsuccessful applicants. All allotment money was received by 31 August 2016.
On 1 August 2017, a call was made for the remaining $1 per share still owing. All call money
except that payable on 20 000 shares was received by 30 September 2017.
Required
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