16 Oct 2021: To assist with cash flow difficulties the company issued a prospectus inviting offers for  40000 options to acquire A ordinary share at an issue price of $2 per option, payable in full on application. Each option exercisable on 31 December 2021 allowed the holder to acquire one A ordinary share for $3.

31 Dec 2021: Offers wrer received for 30000 options and these were duly alloted. The holders of 25000 options exercised their options and 25000 A ordinary shares were alloted. The remaining time lapsed

Required

Prepare journal entries to record the following transaction in the records of Gold Ltd.(show all workings)
 

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The share capital of Gold Ltd on 30 June 2021 was: Share capital: 200 000 'A' ordinary shares issued at $3 paid to $2.00 $400,000 100,000 'B' ordinary shares issued at $2, fully paid $200,000 S600,000 The share capital of Gold Ltd on 30 June 2021 was: Share capital: 200 000 'A' ordinary shares issued at $3 paid to $2.00 $400,000 100,000 'B' ordinary shares issued at $2, fully paid $200,000 S600,000

Answer rating: 100% (QA)

Step 1 Share capital is the capital which an owner c... View the full answer