York Ltd. was registered on 1 July 2020. The next day, the directors issued a disclosure document
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Question:
York Ltd. was registered on 1 July 2020. The next day, the directors issued a disclosure document inviting applicants for 700,000 ordinary shares with an issue price of $1. The shares were payable 20¢on application and 40¢ on allotment. By the end of July, the company had received exactly 700,000 applications, together with the correct application monies. The directors allotted these shares on 1 August. The correct allotment monies were received by the end of September. On 1 October 2020, the directors made a call of 25¢ per share. Call monies were due and payable by 31 October, and were received by then except in respect of one parcel of 10,000 shares.
Required:
- Prepare journal entries with explanations to record the transactions above.
- Prepare an extract from the balance sheet as at 31 October 2020, showing owners’ equity
Expert Answer:
Answer Issued Capitaal 700000 shares 1 Each 700000 Application MOney 20 Journal Entry For Applicatio... View the full answer
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