On 1 July 2020, Albany Ltd issued a prospectus inviting applications for 600,000 ordinary shares, at an issue price of $7, payable $2.00 on application, $3 on allotment, and $2 on future call(s), dates to be determined by the directors. By 1 September 2020, applications were received for 620,000 shares with $2 paid per share. On 6 September 2021, the directors allotted 600,000 shares. Refunds were made to oversubscribed applicants. Share issue costs of $12,400 were also paid on the same date. All the allotment money was received by 1 October. On 1 February 2021, a final call for $2 was made. 580,000 shares call money were received by 1 March 2021. Required: Prepare journal entries to record the above transactions.
On 1 July 2020, Albany Ltd issued a prospectus inviting applications for 600,000 ordinary shares, at an issue price of $7, payable $2.00 on application, $3 on allotment, and $2 on future call(s), dates to be determined by the directors.
By 1 September 2020, applications were received for 620,000 shares with $2 paid per share.
On 6 September 2021, the directors allotted 600,000 shares. Refunds were made to oversubscribed applicants. Share issue costs of $12,400 were also paid on the same date.
All the allotment money was received by 1 October.
On 1 February 2021, a final call for $2 was made. 580,000 shares call money were received by 1 March 2021.
Required:
Prepare
Step by step
Solved in 2 steps with 1 images
