Issue of shares JB Milks Ltd invited applications for 300,000 5% Preference shares of $1 cach...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Issue of shares JB Milks Ltd invited applications for 300,000 5% Preference shares of $1 cach at $1.40, payable: 40% on application, 80% on allotment (including premium) 20% on first and final call All the allotment money was received but a holder of 10,000 shares failed to meet the call and forfeited his shares in accordance with the articles of the company. All forfeited shares were subsequently re-issuecd as fully paid shares at 80 cents cach. Required: A. i. ii. Prepare the following Accounts: Application & Allotment Account Preference Share Capital Account Share Premium Account iii. iv. Bank Account First & Final Call Account v. vi. vii. Investment: Own Share Account B. Explain the following terms: i. Forfeiture ii. Redemption of shares iii. Earnings per Share Issue of shares JB Milks Ltd invited applications for 300,000 5% Preference shares of $1 cach at $1.40, payable: 40% on application, 80% on allotment (including premium) 20% on first and final call All the allotment money was received but a holder of 10,000 shares failed to meet the call and forfeited his shares in accordance with the articles of the company. All forfeited shares were subsequently re-issuecd as fully paid shares at 80 cents cach. Required: A. i. ii. Prepare the following Accounts: Application & Allotment Account Preference Share Capital Account Share Premium Account iii. iv. Bank Account First & Final Call Account v. vi. vii. Investment: Own Share Account B. Explain the following terms: i. Forfeiture ii. Redemption of shares iii. Earnings per Share
Expert Answer:
Answer rating: 100% (QA)
Solution to the above problem is given in the following images Ans A Ans B Explain following ite... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
1. What is the pH of a solution that has an [H*] concentration of: a. 6.50 x 10-0 mol/L b. 1.00 x 10 mol/L 2. What is the [H*] concentration of a solution with pH of: a. 3.82 b. 11.11 3. Calculate...
-
The following information pertains to Ming Corp. at January 1, 2018: Common stock, $10 par, 50,000 shares authorized, 3,000 shares issued and outstanding Paid-in capital in excess of par, common...
-
Question 1. This question is based on a journal article that appeared in the New England Journal of Medicine: Gawande AA et al., "Risk factors for retained instruments and sponges after surgery."...
-
1. Suppose that a stoichiometric mixture of isooctane (C8H18) and air is burned in an engine and then the fuel is changed to 10% (by liquid volume) ethanol and 90% by liquid volume isooctane. If the...
-
Explain the reasoning behind the following statement: In studies about a very diverse population, large samples are often necessary, whereas for more homogeneous populations smaller samples are often...
-
A random sample of size 25 from a normal distribution has standard deviation s = 51. Test H0: = 30 versus H1: 30. Use the = 0.05 level of significance.
-
Haupt Consulting, Inc., completed the following transactions during the first half of December, 2010: Requirements 1. Open T-accounts in the ledger: Cash, Accounts receivable, Supplies, Equipment,...
-
Suppose that during 2013, the market for Stanmore?s special-purpose machines grew by 3%. In Exercise 12- 22, Stanmore Corporation makes a special- purpose machine, D4H, used in the textile industry....
-
Evaluate other areas of financial analysis for Coca Cola and Pepsi: capital spending, stock growth, beta values, credit rating service valuations (if possible), bond rating valuations (if possible),...
-
Angie March owns a catering company that stages banquets and parties for both individuals and companies. The business is seasonal, with heavy demand during the summer months and year-end holidays and...
-
3. Imagine you are canoeing across a lake at night with a friend. You have a flashlight in your canoe so you can see where you are going. Now, for some unknown reason, your so-called friend tips the...
-
On Twitter read a number of business-related messages from reputable organizations, such as GM, Ford Motor Company, Kia Motors, Pepsi, or Coca-Cola. Look for apparent examples of successful...
-
In her book Alone Together, professor Sherry Turkle argues that increasing dependence on technology leads to a consequent diminution in personal connections. Technology is seductive when what it...
-
Fly Fast Ltd operates a small charter plane operation in South West Queensland. The airline provides a fly-in fly-out service to mining operations in this area. Currently Fly Fast operates one plane...
-
How much writing is required by people working in your career area? The best way to learn about on-the-job writing is to talk with someone who has a job similar to the one you hope to have one day....
-
Write a rsum that you could use in your job search. As your instructor directs, a. Write a rsum for the field in which you hope to find a job. b. Write two different rsums for two different job paths...
-
A restaurant wants to forecast its weekly sales. Historical data (in dollars) for fifteen weeks are shown below. Use Excel and the Moving Average template to answer the following questions. Time...
-
Use the T account for Cash below to record the portion of each of the following transactions, if any that affect cash. How do these transactions affect the companys liquidity? Jan. 2 Provided...
-
Base plc acquired 60% of the common shares of Ball plc on 1 January 20X0 and gained control. At that date the statements of financial position of the two companies were as follows: Note: The fair...
-
Filios Products plc owns a chain of hotels through which it provides three basic services; restaurant facilities, accommodation, and leisure facilities. The latest financial statements contain the...
-
Purchases of a certain product during July were: Units sold during the month were: Required: Assuming no opening inventories: (i) Determine the cost of goods sold for July under three different...
-
Calculate the change in entropy for the conversion of \(1 \mathrm{~mol}\) of ice to liquid at \(273 \mathrm{~K}\) and \(1 \mathrm{~atm}\). The latent heat of fusion is \(6500 \mathrm{~J} /...
-
Calculate the change in entropy when 5 moles of an ideal gas expands from a volume of \(5 \mathrm{~L}\) to \(50 \mathrm{~L}\) at \(27^{\circ} \mathrm{C}\).
-
Calculate the entropy change when \(96 \mathrm{~g}\) of methane is heated from \(35^{\circ} \mathrm{C}\) to \(200^{\circ} \mathrm{C}\) at constant volume. Assume \(C_{V}=1.735 \mathrm{~kJ} /...
Study smarter with the SolutionInn App