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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 61E: Issuing and Repurchasing Stock Mohawk Company had the following transactions related to its common...

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Similar questions

Which of the following is issued to shareholders to acquired unissued or treasury shares within a specified tie period at a specified price?a. Share optionb. Share warrantc. Stock dividendd. Share subscription
Which of the following classifications represents the most shares of common stock?a. Unissued sharesb. Issued sharesc. Treasury sharesd. Outstanding sharese. Authorized shares
What is the accounting treatment of the direct issue costs of shares of stocks?Debit to the related share premium during organization stage and operating stageDebit to organizational cost during the organization stageDebit to revenue expenditure during the operating stageDebit to accumulated expenses during the operating stage
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
Which of the following would affect the Share Premium - Issuance account in relation to treasury shares? reissuance above cost reissuance below cost retirement below par retirement above par
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
By default, issuance costs of shares is debited to Share Capital Retained Earnings Issuance Cost Share Premium
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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In financial markets first time issued shares to be publicly traded in stock market are considered as a. Traded offering 5. Public Markets c. Issuance offering d. Initial public offerings
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