Alpha Ltd was registered as a corporation on 1 July 2020. On this day a prospectus...
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Alpha Ltd was registered as a corporation on 1 July 2020. On this day a prospectus was issued calling for applications for 750 000 shares at an issue price of $3. The shares were payable $1 on application, $1 on allotment and $1 due in 1 year's time. Applications closed on 1 August 2020 with the receipt by the company of $760 000, being for 760 000 shares. The shares were allotted on 15 August, with the $10 000 oversubscription being refunded to unsuccessful applicants. All allotment money was received by 31 August 2020. On 1 August 2021, a call was made for the remaining $1 per share still owing. All call money except that payable on 20 000 shares was received by 30 September 2021. Required: Provide the journal entries necessary to account for the above. Alpha Ltd was registered as a corporation on 1 July 2020. On this day a prospectus was issued calling for applications for 750 000 shares at an issue price of $3. The shares were payable $1 on application, $1 on allotment and $1 due in 1 year's time. Applications closed on 1 August 2020 with the receipt by the company of $760 000, being for 760 000 shares. The shares were allotted on 15 August, with the $10 000 oversubscription being refunded to unsuccessful applicants. All allotment money was received by 31 August 2020. On 1 August 2021, a call was made for the remaining $1 per share still owing. All call money except that payable on 20 000 shares was received by 30 September 2021. Required: Provide the journal entries necessary to account for the above.
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Answer rating: 100% (QA)
1 July 2020 Dr Cash 760000 Cr Share Capital 760000 1... View the full answer
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
Posted Date:
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