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The share capital of Bailey Ltd on 30 June 2022 was: Share capital: 400 000 'A' ordinary shares issued at $4 paid to $2.00 300,000 'B' ordinary shares issued at $4, fully paid Required Prepare journal entries to record the following transactions in the records of Bailey Ltd 01 Nov 2022 $800,000 $1,200,000 $2,000,000 The company makes a 1-for-2 rights offer to its 'B' ordinary shareholders. The rights are renounceable and allow holders to obtain 'B' ordinary shares for $3 per share, payable in full on application. 30 Nov 2022 The holders of 12 000 B' ordinary shares accept the rights offer by the expiry date. The shares are duly allotted and all money is received. 16 Jan 2023 A call of $2 per share is made on all 'A' ordinary shares. All call money except that owing by the holder of 20,000 shares is received by 31 January. 05 Feb 2023 Shares on which calls are unpaid are forfeited and cancelled, as per the company's constitution. Required Prepare journal entries to record the following transactions in the records of Bailey Ltd. (Show all workings)

The share capital of Bailey Ltd on 30 June 2022 was: Share capital: 400 000 'A' ordinary shares issued at $4 paid to $2.00 300,000 'B' ordinary shares issued at $4, fully paid Required Prepare journal entries to record the following transactions in the records of Bailey Ltd 01 Nov 2022 $800,000 $1,200,000 $2,000,000 The company makes a 1-for-2 rights offer to its 'B' ordinary shareholders. The rights are renounceable and allow holders to obtain 'B' ordinary shares for $3 per share, payable in full on application. 30 Nov 2022 The holders of 12 000 B' ordinary shares accept the rights offer by the expiry date. The shares are duly allotted and all money is received. 16 Jan 2023 A call of $2 per share is made on all 'A' ordinary shares. All call money except that owing by the holder of 20,000 shares is received by 31 January. 05 Feb 2023 Shares on which calls are unpaid are forfeited and cancelled, as per the company's constitution. Required Prepare journal entries to record the following transactions in the records of Bailey Ltd. (Show all workings)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The share capital of Bailey Ltd on 30 June 2022 was: Share capital: 400 000 'A' ordinary shares issued at $4 paid to $2.00 300,000 'B' ordinary shares issued at $4, fully paid Required Prepare journal entries to record the following transactions in the records of Bailey Ltd 01 Nov 2022 $800,000 $1,200,000 $2,000,000 The company makes a 1-for-2 rights offer to its 'B' ordinary shareholders. The rights are renounceable and allow holders to obtain 'B' ordinary shares for $3 per share, payable in full on application. 30 Nov 2022 The holders of 12 000 B' ordinary shares accept the rights offer by the expiry date. The shares are duly allotted and all money is received. 16 Jan 2023 A call of $2 per share is made on all 'A' ordinary shares. All call money except that owing by the holder of 20,000 shares is received by 31 January. 05 Feb 2023 Shares on which calls are unpaid are forfeited and cancelled, as per the company's constitution. Required Prepare journal entries to record the following transactions in the records of Bailey Ltd. (Show all workings)
Transcribed Image Text:The share capital of Bailey Ltd on 30 June 2022 was: Share capital: 400 000 'A' ordinary shares issued at $4 paid to $2.00 300,000 'B' ordinary shares issued at $4, fully paid Required Prepare journal entries to record the following transactions in the records of Bailey Ltd 01 Nov 2022 $800,000 $1,200,000 $2,000,000 The company makes a 1-for-2 rights offer to its 'B' ordinary shareholders. The rights are renounceable and allow holders to obtain 'B' ordinary shares for $3 per share, payable in full on application. 30 Nov 2022 The holders of 12 000 B' ordinary shares accept the rights offer by the expiry date. The shares are duly allotted and all money is received. 16 Jan 2023 A call of $2 per share is made on all 'A' ordinary shares. All call money except that owing by the holder of 20,000 shares is received by 31 January. 05 Feb 2023 Shares on which calls are unpaid are forfeited and cancelled, as per the company's constitution. Required Prepare journal entries to record the following transactions in the records of Bailey Ltd. (Show all workings)
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