Port Ltd was involved in the following transactions during 1 July 2019 to 30 June 2020...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Port Ltd was involved in the following transactions during 1 July 2019 to 30 June 2020 financial period. 1) On 5 November 2019, the directors of the company decided to raise extra capital by issuing 1.6 million ordinary shares publicly at a price of $3 each share. The company received application monies of $5,280,000 for 1.76 million shares on 30 November. 2) The company decided to allot shares to applicants on the basis of 10 shares for every 11 shares applied for on 30 December. 3) On 30 December, the excess amounts paid on application were refunded to applicants after the allotment. 4) The funds raised were transferred to the company's business account. 5) The company paid $580,000 interim dividends from prior retained earnings to ordinary shareholders on 7 February 2020. 6) The company issued 350,000 bonus shares at a price of $2.5 per share from general reserve on 30 June. 7) The company earned $470,000 profit during the financial year ended 30 June. Required: a) Provide journal entries to record the above transactions for 2019/2020 financial year. (Narrations are required) b) What is the purpose of "General Reserve" account and explain accounting for General Reserve. Port Ltd was involved in the following transactions during 1 July 2019 to 30 June 2020 financial period. 1) On 5 November 2019, the directors of the company decided to raise extra capital by issuing 1.6 million ordinary shares publicly at a price of $3 each share. The company received application monies of $5,280,000 for 1.76 million shares on 30 November. 2) The company decided to allot shares to applicants on the basis of 10 shares for every 11 shares applied for on 30 December. 3) On 30 December, the excess amounts paid on application were refunded to applicants after the allotment. 4) The funds raised were transferred to the company's business account. 5) The company paid $580,000 interim dividends from prior retained earnings to ordinary shareholders on 7 February 2020. 6) The company issued 350,000 bonus shares at a price of $2.5 per share from general reserve on 30 June. 7) The company earned $470,000 profit during the financial year ended 30 June. Required: a) Provide journal entries to record the above transactions for 2019/2020 financial year. (Narrations are required) b) What is the purpose of "General Reserve" account and explain accounting for General Reserve.
Expert Answer:
Answer rating: 100% (QA)
Date Particulars Debit Credit 5Nov19 Bank Ac 1760000 3 5280000 To Shar... View the full answer
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date:
Students also viewed these accounting questions
-
The Eaton School District engaged in the following transactions during its scal year ending August 31, 2015. It established a purchasing department, which would be accounted for in a new internal...
-
The Eaton School District engaged in the following transactions during its fiscal year ending August 31, 2018. It established a purchasing department, which would be accounted for in a new internal...
-
The Electric Company engaged in the following transactions during 2014. The beginning cash balance was $43,000 and ending cash balance was $48,600. 1. Sales on account were $274,000. The beginning...
-
Determine the vector A-C, given the vectors A and C in the figure. (Figure 1) Figure B (B=26.5) 56.0% (A = 44.0) 28.0 C(C= 31.0) 1 of 1 Determine the magnitude of the vector A - . Express your...
-
The following data show the average prices for flat panel televisions in the United States over a six quarter period. a. Forecast the average price of a flat panel TV in the third quarter of 2012...
-
A companys current ratio is 2.0. If the company uses cash to retire notes payable due within one year, would this transaction increase or decrease the current ratio and asset turnover ratio? Current...
-
For each of the following situations, calculate the population standard error of the mean \(\sigma \mathrm{X}^{-}\). a. \(\sigma=18 ; N=36\) b. \(\sigma=9.42 ; N=49\) c. \(\sigma=1.87 ; N=60\) d....
-
A car dealer presently leases a small computer with software for $5000 per year. As an alternative he could purchase the computer for $7000 and lease the software for $3500 per year. Any time he...
-
JCRCL is considering a project, which will require an investment of $60 million today. Weighted average floatation cost is 10% of the gross amount raised. The project will provide cash flows of $8...
-
Chicago investment firm is offering a new financial derivative called a windy put. The windy put is European and has a payoff at expiration equal to Max(0.75S T , 70-S T ), where S T is the price of...
-
In Java: Fun with Points, Lines, and Composition Define a Point class (Point.java). Your Point class will have thefollowing members (and no others) variables to hold the x and y values and accessor...
-
Imagine policymakers in the fictional nation of Pcoria are trying to create a Pcorian National Insurance Program (PNIP) that will bring full insurance to all the citizens of Pcoria. a. Figure 9.21...
-
What are the pros and cons of modeling the current process?
-
Define an agenda for the executive workshop and the purpose and outcomes from each agenda item.
-
What is unique about the Innovate phase?
-
What are typical agenda items in an Understand workshop?
-
n March 2022, Jesse traded in a 2019 van for a new 2022 model. He used both the old van and the new van 75% for business. Jesse has claimed actual expenses for the business use of the old van since...
-
As indicated by mutual fund flows, investors tend to beat the market seek safety invest in last year's winner invest in last years loser
-
Loren Inc. manufactures products that pass through two or more processes. During April, equivalent units were computed using the FIFO method: Units started and completed ................... 4,600...
-
Consider the following information taken from GERs financial statements: Also, GERs operating cash flows were $12,829 and $14,874 in 2012 and 2011, respectively. Required: 1. Calculate GERs current...
-
Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labor; hence, there are no traceable fixed costs. Common fixed cost equals $30,000....
-
cell before his work shift. A few items remained in his old cell: a pair of Adidas shoes, some electronic equipment, and some food. Melvin hid the property and asked the guard to deadlock the cell....
-
Nelson Rodriguez and Belinda Georgeson had a daughter together and had been living together since some time in 2012. In June 2015, Rodriguez became physically abusive with Georgeson. Rodriguez was...
-
Clarett sought summary judgment on the merits of his antitrust claim. The NFL asserted that Clarett lacked antitrust standing and, as a matter of law, that the eligibility rules were immune from...
Study smarter with the SolutionInn App