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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Mary Poppins plans to start a company and offers to sell 30,000 ordinary shares at a price of $2 per share, to investors. The terms of the share offer are as follows: Dates Terms $1.00 is payable upon application, due by 31st August. August 1st to 31st September 1st to 30th Allotment will be made on the 1st September. $0.50 is then due, by 30th September. December 1st to 31st A call will then be made on December 1st, for all outstanding money. The call money is due by 31st December. Assume that during the application period, applications were received for 40,000 shares and that all money requested from investors was collected by all the appropriate due dates above. By the 30th September, the total amount of cash that Mary had collected from investors was: Select one: O a. $45,000 O b. $30,000 O c. $55,000 O d. $15,000
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