Scone Ltd was registered on 1 February 2016. The following events occurred in that year: Feb. 1
Question:
Scone Ltd was registered on 1 February 2016. The following events occurred in that year:
Feb. 1 Mar. 15 Mar. 18 | 25000 ordinary shares were allotted to the original members. The shares were paid for in full at a price of $1 each. A prospectus was issued for 100000 10% preference shares and 150000 ordinary shares, payable in full on application. The issue prices of the preference shares and ordinary shares respectively were $2 and $1. Applications were received for 100000 preference shares and 220000 ordinary shares. The directors allotted the shares in terms of the prospectus, excess monies being returned to unsuccessful applicants. |
Required
A. Prepare entries in general journal form to record the transactions.
B. Show the equity section of the balance sheet as at 18 March 2016.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett