On April 01, 2020 a limited company was incorporated with an authorised of a 40000 $ capital of divided into shares of $ 10 each. It offered to the public for subscription of 3,000 shares payable as follows: On Application $3 per share On Allotment $2 per share On First Call (One month after allotment) $ 2.50 per share On Second and Final Call $ 2.50 per share The shares were fully subscribed for by the public and application money duly received on April 15, 2020. The directors made the allotment on May 1, 2020. Requirement Pass journal entries to record this transaction
On April 01, 2020 a limited company was incorporated with an authorised of a 40000 $ capital of divided into shares of $ 10 each. It offered to the public for subscription of 3,000 shares payable as follows: On Application $3 per share On Allotment $2 per share On First Call (One month after allotment) $ 2.50 per share On Second and Final Call $ 2.50 per share The shares were fully subscribed for by the public and application money duly received on April 15, 2020. The directors made the allotment on May 1, 2020. Requirement Pass journal entries to record this transaction
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On April 01, 2020 a limited company was incorporated with an authorised of a 40000 $ capital of divided into shares of $ 10 each. It offered to the public for subscription of 3,000 shares payable as follows:
On Application $3 per share
On Allotment $2 per share
On First Call (One month after allotment) $ 2.50 per share
On Second and Final Call $ 2.50 per share
The shares were fully subscribed for by the public and application money duly received on April 15, 2020. The directors made the allotment on May 1, 2020.
Requirement
Pass
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.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