The equity of Subang Ltd at 30 June 2020 was as follows: 600,000 ordinary A shares,...
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The equity of Subang Ltd at 30 June 2020 was as follows: 600,000 ordinary "A shares, issued at $1.50, fully paid 500,000 ordinary "B' shares, issued at $2, called to $1.20 General reserve Retained earings The following events occurred during the year ended 30 June 2021: 2020 July 15 Aug 31 Sept 10 Oct. 1 Oct. 31 2021 Feb. 3 Feb. 28 Mar. 5 Apr. 15 $ 900,000 600,000 80,000 450,000 The final call, due 31 August, was made on the partly paid "B" shares. All call money was received, except for that due on 15,000 B¹ shares. In accordance with the constitution, the shares on which the call was unpaid were forfeited. The company is entitled to keep any balance from forfeiture of shares. The company offered ordinary 'A' shareholders one option (at a price of 65 cents per option) for every 10 shares held. Each option entitled the holder to buy 1 ordinary 'A' share at a price of $1.40 per share, exercisable on or before 15 April 2021. 60,000 options were taken up by shareholders, for which all money due was received. A prospectus was issued, inviting applications for 110,000 ordinary "C shares at an issue price of $2. payable in full on application. The purpose of the issue was to raise funds for expansion. The issue was underwritten at a commission of $6,500. The issue of ordinary "C" shares were closed and fully subscribed, with all money due having been received. The 110,000 C shares were allotted, and the underwriting commission was paid. 54,000 'A' shares were issued as a result of 54,000 options having been exercised, for which money had been received. The unexercised options lapsed Required: Prepare general journal entries, including any closing entries required, to record the following transactions that occurred during the year ended 30 June 2021. The equity of Subang Ltd at 30 June 2020 was as follows: 600,000 ordinary "A shares, issued at $1.50, fully paid 500,000 ordinary "B' shares, issued at $2, called to $1.20 General reserve Retained earings The following events occurred during the year ended 30 June 2021: 2020 July 15 Aug 31 Sept 10 Oct. 1 Oct. 31 2021 Feb. 3 Feb. 28 Mar. 5 Apr. 15 $ 900,000 600,000 80,000 450,000 The final call, due 31 August, was made on the partly paid "B" shares. All call money was received, except for that due on 15,000 B¹ shares. In accordance with the constitution, the shares on which the call was unpaid were forfeited. The company is entitled to keep any balance from forfeiture of shares. The company offered ordinary 'A' shareholders one option (at a price of 65 cents per option) for every 10 shares held. Each option entitled the holder to buy 1 ordinary 'A' share at a price of $1.40 per share, exercisable on or before 15 April 2021. 60,000 options were taken up by shareholders, for which all money due was received. A prospectus was issued, inviting applications for 110,000 ordinary "C shares at an issue price of $2. payable in full on application. The purpose of the issue was to raise funds for expansion. The issue was underwritten at a commission of $6,500. The issue of ordinary "C" shares were closed and fully subscribed, with all money due having been received. The 110,000 C shares were allotted, and the underwriting commission was paid. 54,000 'A' shares were issued as a result of 54,000 options having been exercised, for which money had been received. The unexercised options lapsed Required: Prepare general journal entries, including any closing entries required, to record the following transactions that occurred during the year ended 30 June 2021.
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Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
Posted Date:
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