On the 1st July, 2019 Armidale Ltd has Shareholders Funds worth $2,010,000 comprising of: Share capital...

   

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On the 1st July, 2019 Armidale Ltd has Shareholders Funds worth $2,010,000 comprising of: Share capital of Retained Earnings General Reserve $1,800,000 150,000 60,000 The following transaction took place: Aug Issued a prospectus calling for application for 600000 ordinary shares to be issued at a price of $3, payable $2 on application, 50c on allotment and the balance as and when required. 1 St Applications closed with the issue oversubscribed and 700000 shares applied for. The directors allotted shares on the basis of 6 shares for every 7 applied for. Excess application money was applied against amounts owing on allotment. 2 Balance of allotment monies received. Oct Nov The directors made a final call of 50c on the shares. 18 Dec All call money was received except for one shareholder who held 5000 shares. 15 June A profit of $565000 was recorded. 18 The directors declared a final dividend of $95000 and transferred $50000 to General application money was applied against amounts owing on allotment Oct Balance of allotment monies received. 15 Nov The directors made a final call of 50c on the shares. 18 Dec All call money was received except for one shareholder who held 5000 shares. 15 June A profit of $565000 was recorded. 30 The directors declared a final dividend of $95000 and transferred $50000 to General Reserve. Required: 1. Prepare journal entries to record the above transactions in the general journal. (Narrations not required) 15 Marks 4 2. Complete the Shareholders Fund section of the Balance Sheet at 30th June 2020. 4 Marks On the 1st July, 2019 Armidale Ltd has Shareholders Funds worth $2,010,000 comprising of: Share capital of Retained Earnings General Reserve $1,800,000 150,000 60,000 The following transaction took place: Aug Issued a prospectus calling for application for 600000 ordinary shares to be issued at a price of $3, payable $2 on application, 50c on allotment and the balance as and when required. 1 St Applications closed with the issue oversubscribed and 700000 shares applied for. The directors allotted shares on the basis of 6 shares for every 7 applied for. Excess application money was applied against amounts owing on allotment. 2 Balance of allotment monies received. Oct Nov The directors made a final call of 50c on the shares. 18 Dec All call money was received except for one shareholder who held 5000 shares. 15 June A profit of $565000 was recorded. 18 The directors declared a final dividend of $95000 and transferred $50000 to General application money was applied against amounts owing on allotment Oct Balance of allotment monies received. 15 Nov The directors made a final call of 50c on the shares. 18 Dec All call money was received except for one shareholder who held 5000 shares. 15 June A profit of $565000 was recorded. 30 The directors declared a final dividend of $95000 and transferred $50000 to General Reserve. Required: 1. Prepare journal entries to record the above transactions in the general journal. (Narrations not required) 15 Marks 4 2. Complete the Shareholders Fund section of the Balance Sheet at 30th June 2020. 4 Marks

Answer rating: 100% (QA)

Answer 1 July 1 Shareholders equity is 2010000 Aug 1 Issued a prospectus calling for application for 600000 ordinary shares to be issued at a price of ... View the full answer