Issue of shares Procedures of issuing shares by installment Issue prospectus to call upon shares application Receive share application with application money Record the call if the shares are issued by instalments Return application money to unsuccessful applicants Allot shares to successful applicants Issue of shares ► Journal entries for issues of shares by installment Procedures Share applications received On allotment Receive money on allotment stage Refund to those unsuccessful applicants On Call Journal Entries DR Cash CR Application and Allotment - Ordinary Shares DR Application and Allotment - Ordinary Shares CR Share Capital DR Cash CR Application and Allotment - Ordinary Shares DR Application and Allotment - Ordinary Shares CR Cash DR Call Account CR Share Capital Call money received DR Cash CR Call Account

Issue of shares Procedures of issuing shares by installment Issue prospectus to call upon shares application Receive share application with application money Record the call if the shares are issued by instalments Return application money to unsuccessful applicants Allot shares to successful applicants Issue of shares ► Journal entries for issues of shares by installment Procedures Share applications received On allotment Receive money on allotment stage Refund to those unsuccessful applicants On Call Journal Entries DR Cash CR Application and Allotment - Ordinary Shares DR Application and Allotment - Ordinary Shares CR Share Capital DR Cash CR Application and Allotment - Ordinary Shares DR Application and Allotment - Ordinary Shares CR Cash DR Call Account CR Share Capital Call money received DR Cash CR Call Account

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 5MC: Treasury stock is listed as a(n) __________ on the balance sheet. (a) current liability (b) current...

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Similar questions

Which of the following classifications represents the most shares of common stock?a. Unissued sharesb. Issued sharesc. Treasury sharesd. Outstanding sharese. Authorized shares
The entry to record the reissuance of treasury shares above their original acquisition cost includes Select the correct response: a debit to share premium O a debit to retained earnings a credit to share premium a debit to both share premium and retained earnings
Treasury stock is listed as a(n) __________ on the balance sheet. (a) current liability (b) current asset (c) deduction from stockholders equity (d) addition to stockholders equity
when shares are issued at a premium the value of the share premium should be : a- taken to the profit and loss account b- shown under current liabilities in the balance sheet c- shown under capital & reserves in the balance sheet d- taken to the trading account
Information disclosed in a balance sheet/statement of financial position about shares of common stock/ordinary stock includes the number of shares that are: Select one: a. Authorized and issued. b. Authorized, issued, outstanding and non-outstanding. c. Authorized, issued and outstanding. d. Issued and outstanding.
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Which of the following formulas is correct regarding the different status of shares of stock: authorized shares, issued shares, outstanding shares, and treasury shares? a. Issued – Treasury = Outstanding b. Issued + Treasury = Authorized c. Authorized + Treasury = Issued d. Issued + Outstanding + Treasury = Authorized
Which of the following formulas is correct regarding the different status of shares of stock: authorized shares, issued shares, outstanding shares, and treasury shares? a. Issued - Treasury = Outstanding %3D b. Issued + Treasury - Authorized C. Authorized + Treasury = Issued d. Issued + Outstanding + Treasury Authorized
When shares are issued fully payable on application, the journal entries to record the issue and allotment (assuming the minimum subscription is reached) are: Select one: a. Dr Cash Trust Cr Application Dr Cash Cr Cash trust b. Dr Cash Cr Application Dr Application Cr Share Capital c. Dr Cash Trust Cr Application Dr Application Cr Share capital Dr Cash Cr Cash Trust d. Dr Cash Cr Allotment Dr Allotment Cr Share capital
1. Subscribed Share Capital shall be presented as 2. Treasury shares are an entity’s own shares that were previously issued but are subsequently reacquired but not retired. Treasury shares are favorably accounted for 3. Which of the following is the second priority in the valuation of shares issued for services received? a. Par Value of shares b. Billings on services c, FV of services d. FV of shares
What is advantges and dis advantge of shares repurchacse to the company?
Record the issuance of shares when sold for cash and for noncash consideration