On 1 July 2022, Mick Ltd invited Fanning Ltd to purchase 1 million shares at $3.00 per
Question:
On 1 July 2022, Mick Ltd invited Fanning Ltd to purchase 1 million shares at $3.00 per share. At the time of accepting the offer, Fanning Ltd which is an insurance company had cash resources available of only $2600000. The balance of the purchase price would be made up of insurance to be provided by Fanning Ltd to Mick Ltd. By 30 June 2023, Fanning Ltd had supplied $280 000 worth of insurance to Mick Ltd.
REQUIRED
Provide the accounting entries to record the issue of the Mick Ltd shares.
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The entries to reflect the sale of the shares by Mick Ltd ...View the full answer
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Akshay Agarwal
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