Ltd was registered on 1 January 2021 with an authorized share capital of 1,000,000 shares at a par value of $2 and premium of $1. On 2nd January 2021, the company issued 500,000 shares to the public and required the shares to be paid as follows: 1. $1 per share payable on Application; 2. $0.60 per share payable on Allotment; and 3. $0.40 per share payable on call with an addition Premium of $1 per share. On 10 January 2021, Applications were received for 600,000 shares. On 11 January 2021, the board decided to transfer 50% of excess application to Allotment and refund the remaining excess applications. The remaining allotment money was received on 20 January 2021. A call was made on the 31" of January 2021 and all call money was received. Required: Prepare the general journal entries necessary to record the above transactions.
Ltd was registered on 1 January 2021 with an authorized share capital of 1,000,000 shares at a par value of $2 and premium of $1. On 2nd January 2021, the company issued 500,000 shares to the public and required the shares to be paid as follows: 1. $1 per share payable on Application; 2. $0.60 per share payable on Allotment; and 3. $0.40 per share payable on call with an addition Premium of $1 per share. On 10 January 2021, Applications were received for 600,000 shares. On 11 January 2021, the board decided to transfer 50% of excess application to Allotment and refund the remaining excess applications. The remaining allotment money was received on 20 January 2021. A call was made on the 31" of January 2021 and all call money was received. Required: Prepare the general journal entries necessary to record the above transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
required: please answer this question by preparing the general journal entry to record the above transaction. I need the full answers . I am a new student in Accounting.
Transcribed Image Text:QUESTION 1
ABC Ltd was registered on 1 January 2021 with an authorized share capital of 1,000,000
shares at a par value of $2 and premium of $1. On 2nd January 2021, the company issued
500,000 shares to the public and required the shares to be paid as follows:
1. $1 per share payable on Application;
2. $0.60 per share payable on Allotment; and
3. $0.40 per share payable on call with an addition Premium of $1 per share.
On 10 January 2021, Applications were received for 600,000 shares. On 11 January 2021,
the board decided to transfer 50% of excess application to Allotment and refund the
remaining excess applications. The remaining allotment money was received on 20 January
2021. A call was made on the 31* of January 2021 and all call money was received.
Required:
Prepare the general journal entries necessary to record the above transactions.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education