file-image Time remaining: 00 : 09 : 37 Accounting Question 5 Mediterranean Homes Ltd makes a public offer of its share to extend its operation in Sydney. Its prospectus notes that the shares are to be issued at $1.50 per share. The shares are to be paid in three instalments. The first payment to be made on the application is $0.60. The second amount of $0.60 will be due within one month of allotment, and the third amount of $0.30 will be due within one month of the first and final call. Mediterranean Homes Ltd will seek to issue 15 million shares. The closing date for application is 31 August 2021. By the closing date, application have been received for 21 million shares. To deal with the oversubscription, Mediterranean Homes has decided to issue shares to all subscribers on pro-rate basis. All amounts due on the allotment are paid by the due date. The first and final call for $0.60 was made on 30 November 2021, with the amounts being due by 31 December 2021. Holders of 3 million shares fail to pay the amount due on the call by the due date, and on 15 January 2022, these holders have their shares forfeited. The forfeited shares are auctioned on 15 February 2022. An amount of $1.05
file-image Time remaining: 00 : 09 : 37 Accounting Question 5 Mediterranean Homes Ltd makes a public offer of its share to extend its operation in Sydney. Its prospectus notes that the shares are to be issued at $1.50 per share. The shares are to be paid in three instalments. The first payment to be made on the application is $0.60. The second amount of $0.60 will be due within one month of allotment, and the third amount of $0.30 will be due within one month of the first and final call. Mediterranean Homes Ltd will seek to issue 15 million shares. The closing date for application is 31 August 2021. By the closing date, application have been received for 21 million shares. To deal with the oversubscription, Mediterranean Homes has decided to issue shares to all subscribers on pro-rate basis. All amounts due on the allotment are paid by the due date. The first and final call for $0.60 was made on 30 November 2021, with the amounts being due by 31 December 2021. Holders of 3 million shares fail to pay the amount due on the call by the due date, and on 15 January 2022, these holders have their shares forfeited. The forfeited shares are auctioned on 15 February 2022. An amount of $1.05
Chapter1: Financial Statements And Business Decisions
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Accounting
Question 5
Mediterranean Homes Ltd makes a public offer of its share to extend its operation in Sydney. Its prospectus notes that the shares are to be issued at $1.50 per share. The shares are to be paid in three instalments. The first payment to be made on the application is $0.60. The second amount of $0.60 will be due within one month of allotment, and the third amount of $0.30 will be due within one month of the first and final call.
Mediterranean Homes Ltd will seek to issue 15 million shares. The closing date for application is 31 August 2021. By the closing date, application have been received for
21 million shares. To deal with the oversubscription, Mediterranean Homes has decided to issue shares to all subscribers on pro-rate basis.
All amounts due on the allotment are paid by the due date. The first and final call for $0.60 was made on 30 November 2021, with the amounts being due by 31 December 2021. Holders of 3 million shares fail to pay the amount due on the call by the due date, and on 15 January 2022, these holders have their shares forfeited. The forfeited shares are auctioned on 15 February 2022. An amount of $1.05 per share is received. The lost of holding the auction is $7,500. The shares are sold as ‘’fully paid’’.
REQUIRED :
Provide the accounting journal entries necessary to account for the transaction and events.
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