Q #3 The following transactions were completed by IQBAL COMPANY Limited: i) Issued 50,000 ordinary shares of Rs.10 each at Rs.12.50 per share to the public payable in full on application. The company received applications for 80,000 shares. The company allotted the shares offered and refunded the amount received in excess. ii) The company issued to the public 50,000 ordinary shares of Rs.10 each payable in full on application. The entire issue was guaranteed by the underwriters. The company received applications for 40,000 shares. As per agreement the underwriters subscribed the balance of the issuance. iii) The company purchased Machinery at a price of Rs.450, 000 and consideration issued to the vendors its own 43,000 Ordinary Shares of Rs.10. iv) Purchased Building and Furniture costing Rs. 1,000,000 and 200,000 against allotting 110,000 stock for Rs. 10 each in full settlement. Required Prepare journal entries in proper form

Q #3 The following transactions were completed by IQBAL COMPANY Limited: i) Issued 50,000 ordinary shares of Rs.10 each at Rs.12.50 per share to the public payable in full on application. The company received applications for 80,000 shares. The company allotted the shares offered and refunded the amount received in excess. ii) The company issued to the public 50,000 ordinary shares of Rs.10 each payable in full on application. The entire issue was guaranteed by the underwriters. The company received applications for 40,000 shares. As per agreement the underwriters subscribed the balance of the issuance. iii) The company purchased Machinery at a price of Rs.450, 000 and consideration issued to the vendors its own 43,000 Ordinary Shares of Rs.10. iv) Purchased Building and Furniture costing Rs. 1,000,000 and 200,000 against allotting 110,000 stock for Rs. 10 each in full settlement. Required Prepare journal entries in proper form

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Give entries in journal to record each of the following situations separately. Purchased of furniture& fixtures for Rs. 700,000 and issued 74,000 shares @ Rs. 10 each. Purchased Building for Rs. 320000 and issued 30000 shares at Rs. 10 each. The Co. issued 280,000 shares @ Rs. 10 at Rs. 12.5 each on cash. Issued 9,000 11% 7-year debenture of Rs. 100 each issued at Rs. 120 each. Issued 5,000 12% 3-year debenture of Rs. 100 each issued at Rs. 94.5 each. Issued 3,000 10% 5-year debenture of Rs. 100 each repayable at Rs. 125 each.
Question 1A: Kohinoor Company Ltd. completed the following transactions. The par value of company’s share is Rs.10 each. March 23: Issued 6, 000 shares at par each to the promoters of the company. April 09: Purchased an equipment costing Rs.52, 000, issuing 3, 250 shares at Rs. 10 each. June 10: Issued 3, 000 shares of Rs.10 each for equipment purchased worthRs.28, 500. Instructions: Give the journal entries to record the above issuance.
ABC Company issued 1,000,000 equity shares of OMR 1 each. The company called up OMR 0.500baisa and the company received the entire amount except on 50,000 shares on which call money has not been received. The called-up capital of the company is a. OMR 975,000 b. OMR 950,000 c. OMR 475,000 d. OMR 500,000
C D B A Evon, a limited liability company, issued 1,000,000 ordinary shares each with a nominal value of 25 cents at a price of $1.10 per share, all received in cash. What should be the accounting entries to record this issue of shares? $1,100,000 $250,000 $850,000 Debit Cash Credit Share Capital Credit Share Premium Debit Share Capital Debit Share Premium Credit Cash Debit Cash Credit Share Capital Debit Cash Credit Share Capital Credit Retained Earnings $250,000 $850,000 $1,100,000 $1,100,000 $1,100,000 $1,100,000 $250,000 $850,000
ASAP!! Frankwood Company Ltd. was registered with the capital of Rs.5,000,000 divided into ordinary shares at par value each. The company offered to the public 15,000 shares payable in full on application. The bank informs that 25,000 shares applications were received. The company allotted the offered shares and refunded the amount received in excess. During the year the company completed the following transactions Issued further 5,000 shares at Rs. 18 each for cash Issued 7,000 shares to the promoters at par Purchased computers for Rs.40,000 and issued 3,000 shares Purchases a piece of land and issued 50,000 shares at Rs. 15 each Required Pass journal entries for Frankwood Company Ltd
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PROBLEM 32: CYPRUS COMPANY began operation on January 1. Authorized were 20,000 shares of P10 par value ordinary shares and 40,000 shares of 10%, P 100 par value preference shares. The following transactions involving shareholders' equity occurred during the first year of operations. January 1 February 23 March 10 April 10 July 14 August 3 December 1 Issued 500 ordinary shares to the corporation promoters in exchange for property valued at P170,000 and services valued at P70,000. The property had cost the promoters P90,000 3 years before and was carried on the promoters' books at P50,000. 31 Issued 10,000 preference shares with a par value of P100 per share. The shares were issued at a price of P150 per share, and the company paid P75,000 to an agent for selling the shares. Sold 3,000 ordinary shares for P390 per share. Issue costs were P25,000 Cordillera Career Development College COLLEGE OF BUSINESS EDUCATION AND ADMINISTRATION Buyagan, Poblacion, La Trinidad, Benguet 4,000 ordinary…
E14-4 Issuing shares payable by instalments [10–15 min] Riverside Ltd is issuing shares payable by instalments. It completed the following transactions: Received an application for 2000 ordinary shares with a total issue price of $10 per share. The applicant paid one-quarter of the total issue price. Allotted the 2000 shares and collected a further half of the total issue price. Made a call on the shares and collected the balance still due. May 3 May 18 Aug 3 Requirement Record these transactions in the general journal. Explanations aren't required.
BCA Company issued 1,000 shares with P 5 par to Atty Bryant as compensation for 1,000 hours of legal services performed Atty Bryant usually bills P 160 per hour for legal services. On the date of issuance, the share had a fair value of P 140. By amount would the share premium account increase as a result of the transaction?*