JB Ltd was incorporated on 1 July 2021 and issued a prospectus inviting applications for 200,000 ordinary shares at an issue price of $10. The shares are payable as follows: $5 payable on application $2 payable on allotment ● ● ● $3 payable on call to be made 30th September 2021 Share issue costs were $10,500 and legahcosts were $1,500 The transactions for the period were as follows: Date Transaction 31/08/2021 Applications were received for 260,000 shares. 3/09/2021 Applications for 60,000 were rejected by the directors and the application money was refunded to the shareholders concerned. 4/09/2021 The Company allotted 200,000 shares to the remaining applicants 25/09/2021 All the allotment money was received. Share issue and legal costs were paid in cash 30/09/2021 The call was made on the shares, payable by 31 October 2021 Call money was received from the shareholders of only 180,000 shares 31/10/2021 31/10/2021 30/4/2022 The remaining 20,000 shares were forfeited. The forfeited shares were offered to an investment company at a price of $8 per share paid to $10 and the transfer was completed on 31 March 2020. The costs of reissue amounted to $1,000 These shareholders received a refund for the amount owed to them Additional information: The company's constitution states that any forfeited shares must be refunded to the shareholders. Required: Prepare the general journal entries (as per template below) in the books of JB Ltd to record the above transactions. Provide narrations for all your entries. General Journal template: Date Details Debit ($) Credit ($)
JB Ltd was incorporated on 1 July 2021 and issued a prospectus inviting applications for 200,000 ordinary shares at an issue price of $10. The shares are payable as follows: $5 payable on application $2 payable on allotment ● ● ● $3 payable on call to be made 30th September 2021 Share issue costs were $10,500 and legahcosts were $1,500 The transactions for the period were as follows: Date Transaction 31/08/2021 Applications were received for 260,000 shares. 3/09/2021 Applications for 60,000 were rejected by the directors and the application money was refunded to the shareholders concerned. 4/09/2021 The Company allotted 200,000 shares to the remaining applicants 25/09/2021 All the allotment money was received. Share issue and legal costs were paid in cash 30/09/2021 The call was made on the shares, payable by 31 October 2021 Call money was received from the shareholders of only 180,000 shares 31/10/2021 31/10/2021 30/4/2022 The remaining 20,000 shares were forfeited. The forfeited shares were offered to an investment company at a price of $8 per share paid to $10 and the transfer was completed on 31 March 2020. The costs of reissue amounted to $1,000 These shareholders received a refund for the amount owed to them Additional information: The company's constitution states that any forfeited shares must be refunded to the shareholders. Required: Prepare the general journal entries (as per template below) in the books of JB Ltd to record the above transactions. Provide narrations for all your entries. General Journal template: Date Details Debit ($) Credit ($)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:JB Ltd was incorporated on 1 July 2021 and issued a prospectus inviting applications for 200,000 ordinary shares at
an issue price of $10.
The shares are payable as follows:
$5 payable on application
$2 payable on allotment
●
●
●
●
$3 payable on call to be made 30th September 2021
Share issue costs were $10,500 and legahcosts were $1,500
The transactions for the period were as follows:
Date
Transaction
31/08/2021
Applications were received for 260,000 shares.
3/09/2021 Applications for 60,000 were rejected by the directors and the application money
was refunded to the shareholders concerned.
The Company allotted 200,000 shares to the remaining applicants
All the allotment money
s received. Share issue and legal costs were paid in cash
The call was made on the shares, payable by 31 October 2021
Call money was received from the shareholders of only 180,000 shares
The remaining 20,000 shares were forfeited. The forfeited shares were offered to an
investment company at a price of $8 per share paid to $10 and the transfer was
completed on 31 March 2020. The costs of reissue amounted to $1,000
30/4/2022 These shareholders received a refund for the amount owed to them
4/09/2021
25/09/2021
30/09/2021
31/10/2021
31/10/2021
Additional information:
The company's constitution states that any forfeited shares must be refunded to the shareholders.
Required:
Prepare the general journal entries (as per template below) in the books of JB Ltd to record the above
transactions. Provide narrations for all your entries.
General Journal template:
Date
Details
Debit ($)
Credit ($)
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