Glass S.A. offered to the public 500,000 ordinary shares fully paid at $3.5 each and the shares were issued on 28 February 2019. The following costs were associated with the issue: promotional costs $5,000; legal costs $8,000; administration costs $3,000 and negotiation costs $1,000. On 1 April 2019, Glass S.A. invited Corp S.A. to purchase 300,000 preference shares at $3 each. At the time of accepting the offer, Corp S.A. paid with land and the balance with cash. The fair value of the land at the day of share purchase was $200,000. RequiredPrepare the journal entries necessary to account for the issue of the shares.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Glass S.A. offered to the public 500,000 ordinary shares fully paid at $3.5 each and the shares were issued on 28 February 2019. The following costs were associated with the issue: promotional costs $5,000; legal costs $8,000; administration costs $3,000 and negotiation costs $1,000. On 1 April 2019, Glass S.A. invited Corp S.A. to purchase 300,000 preference shares at $3 each. At the time of accepting the offer, Corp S.A. paid with land and the balance with cash. The fair value of the land at the day of share purchase was $200,000.

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Prepare the journal entries necessary to account for the issue of the shares.

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