Share Issue CostsShare Capital Dr 14 000 Cash Cr 14 000 Payment of underwriting

Share issue costsshare capital dr 14 000 cash cr 14

This preview shows page 3 - 5 out of 5 pages.

Share Issue Costs/Share Capital Dr 14 000 Cash Cr 14 000 (Payment of underwriting commission and other share issue costs [$8 000 + $6 000]) 3
Image of page 3
Topic 2: Tutorial solution September 15 Cash Dr 1 000 000 Allotment Cr 1 000 000 (Cash received on allotment) 2014 November 1 Call Dr 1 000 000 Share Capital Cr 1 000 000 (Call of $1 per share) Calls in Advance Dr 200 000 Call Cr 200 000 (Transfer of calls received in advance) November 30 Cash Dr 770 000 Call Cr 770 000 (Cash received on 770 000 shares) December 7 Share Capital Dr 180 000 Call Cr 30 000 Forfeited Shares Liability Cr 150 000 (Forfeiture of 30 000 [email protected]$[3+2[) December 15 Cash (30000X$5.60) Dr 168 000 Forfeited Shares Liability Dr 12 000 Share Capital Cr 180 000 (Reissue of shares forfeited) December 16 Forfeited Shares Liability Dr 138 000 Cash (150000-12000) Cr 138 000 (Refund to former shareholders) 4
Image of page 4
Topic 2: Tutorial solution * Workings Allocation of money received on application No. of Shares applied for No. of Shares Allotted Money Received Application Allotment Call 200 000 200 000 $1 200 000 $600 000 $400 000 $200 000 1 000 000 800 000 $3 000 000 $2 400 000 $ 600 000 - 1 200 000 1 000 000 $4 200 000 $3 000 000 $1 000 000 $200 000 5
Image of page 5

You've reached the end of your free preview.

Want to read all 5 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes