On 1 July 2010, Canterbury Finance Limited issued a prospectus inviting the public to subscribe for...

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On 1" July 2010, Canterbury Finance Limited issued a prospectus inviting the public to subscribe for 10,000,000 ordinary shares at an issue price of $5 for each ordinary share. The terms of the share issue are that the issue price is to be settled S2 on application, S2 on allotment and the balance on a call. The expenses related to the share issue were; advertising of share issue and prospectus $25,000; accounting fees associated with drafting of prospectus $10,000; legal expenses associated with share issue S15,000; brokerage fees $100,000; and feasibility study $25,000. These expenses were paid on 15th June 2010. Applications were received for 11,000,000 ordinary shares and all application money was received by the due date, 20 July 2010. The company allotted the 10,000,000 ordinary shares on 1" August 2010 on a pro-rata basis. The excess of application money was used to settle partly the amount due on allotment. The balance of the amounts due on allotment was received by the due date 14* August 2010. The company made a call for the balance of the issue price on 3d September 2010. All amounts due on call were received by the due date 17h September 2010. On 1" June 2010, Canterbury Finance had an opening credit balance of $25,000 in the bank account. Required: Prepare the following ledger accounts to record the above transactions: i Contributed Equity Account (Issued Share Capital Account) i Bank Account On 1" July 2010, Canterbury Finance Limited issued a prospectus inviting the public to subscribe for 10,000,000 ordinary shares at an issue price of $5 for each ordinary share. The terms of the share issue are that the issue price is to be settled S2 on application, S2 on allotment and the balance on a call. The expenses related to the share issue were; advertising of share issue and prospectus $25,000; accounting fees associated with drafting of prospectus $10,000; legal expenses associated with share issue S15,000; brokerage fees $100,000; and feasibility study $25,000. These expenses were paid on 15th June 2010. Applications were received for 11,000,000 ordinary shares and all application money was received by the due date, 20 July 2010. The company allotted the 10,000,000 ordinary shares on 1" August 2010 on a pro-rata basis. The excess of application money was used to settle partly the amount due on allotment. The balance of the amounts due on allotment was received by the due date 14* August 2010. The company made a call for the balance of the issue price on 3d September 2010. All amounts due on call were received by the due date 17h September 2010. On 1" June 2010, Canterbury Finance had an opening credit balance of $25,000 in the bank account. Required: Prepare the following ledger accounts to record the above transactions: i Contributed Equity Account (Issued Share Capital Account) i Bank Account

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