On 30 April, Tamworth Ltd issued 40 000 shares for $6 each, payable $2 on application, $2
Question:
On 30 April, Tamworth Ltd issued 40 000 shares for $6 each, payable $2 on application, $2 on allotment and the remainder due by two equal calls on 30 June and 31 August. Share issue costs of $3500 were paid on 31 May.
Required
Prepare journal entries (in general journal format) to record the share issue up to collection of allotment money assuming:
1. The shares were fully subscribed
2. The shares were undersubscribed by 6000 shares.
Step by Step Answer:
1 Cash Trust 80 000 Application 80 000 Cash received 2 on application Applicatio...View the full answer
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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