Bega Ltd was registered as a new company on 2 January 2017. On that day a prospectus
Question:
Bega Ltd was registered as a new company on 2 January 2017. On that day a prospectus was issued inviting applications for 300 000 ordinary shares at $10, payable $2.50 on application, $2.50 on allotment and the balance due in one call on 15 June 2017. The issue was underwritten for a fee of $7000.
On 31 January, applications closed with the issue undersubscribed by 15000 shares. Directors proceeded to allot the shares. Amounts due on allotment were received on 9 February, including the amount due from the underwriter less the underwriter’s commission.
On 15 June, the amounts due on the call were received with the exception of the amount due on 12 000 shares.
Required
Prepare journal entries (in general journal form) and ledger accounts (in T-account format) to record the above transactions.
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