To apply for one 50 7 debenture for every 100 shares held These were payable in

To apply for one 50 7 debenture for every 100 shares

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To apply for one $50 7% debenture for every 100 shares held. These were payable in full on application. Holders of 600 000 shares chose the first option and holders of 500 000 shares chose the second option. All money was received when due. Required: Prepare general journal entries to record the above events. EVERGREEN LTD General Journal 1. Call - Preference Dr 400 000 Call - Ordinary Dr 1 100 000 Share Capital - Preference Cr 400 000 Share capital - Ordinary Cr 1 100 000 (Call of $5 on 80 000 preference shares and $1 call on 1 100 000 ordinary shares) Cash Dr 1 500 000 Call - Preference Cr 400 000 Call - Ordinary Cr 1 100 000 (Receipt of calls) 2. Cash Dr 120 000 Share Capital - Ordinary Cr 120 000 (Cash on 60 000 shares under rights issue) Cash Trust Dr 250 000 Application - Debentures Cr 250 000 (Cash on 5 000 $50 debentures payable in full on application) Application - Debentures Dr 250 000 Debentures Cr 250 000 (Issue of 5 000 $50 debentures) Cash Dr 250 000 Cash Trust Cr 250 000 (Transfer from trust account)
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  • Three '13
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  • Share capital, 1981, 1973, 1977

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