Wolfgang issue shares via installment. On 1st June they issue a prospectus to potential investors advertising that they will sell $2,500,000 worth of shares at $1 each. Payable $0.30 on application, $0.30 on allotment, and $0.20 on call. By 15th September, the applications are all received, and 2,900,000 share applications were received. On 30th September, Wolfgang decide to refund excess applications. What journal entry should be entered on 30th September? Dr Cash trust $290 000; Cr Cash $290 000 O Dr Application $750 000; Cr Allotment $750 000 Dr Application $120 000; Cr Cash trust $120 000 O Dr Cash $870 000; Cr Cash trust $870 000

Wolfgang issue shares via installment. On 1st June they issue a prospectus to potential investors advertising that they will sell $2,500,000 worth of shares at $1 each. Payable $0.30 on application, $0.30 on allotment, and $0.20 on call. By 15th September, the applications are all received, and 2,900,000 share applications were received. On 30th September, Wolfgang decide to refund excess applications. What journal entry should be entered on 30th September? Dr Cash trust $290 000; Cr Cash $290 000 O Dr Application $750 000; Cr Allotment $750 000 Dr Application $120 000; Cr Cash trust $120 000 O Dr Cash $870 000; Cr Cash trust $870 000

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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Question

100%

Wolfgang issue shares via installment.
On 1st June they issue a prospectus to potential investors advertising that they will
sell $2,500,000 worth of shares at $1 each. Payable $0.30 on application, $0.30 on
allotment, and $0.20 on call.
By 15th September, the applications are all received, and 2,900,000 share
applications were received. On 30th September, Wolfgang decide to refund excess
applications.
What journal entry should be entered on 30th September?
Dr Cash trust $290 000; Cr Cash $290 000
Dr Application $750 000; Cr Allotment $750 000
Dr Application $120 000; Cr Cash trust $120 000
Dr Cash $870 000; Cr Cash trust $870 000

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