Following the case of Polynovo Limited company, Polynovo now has successfully listed on NYSE in the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Following the case of Polynovo Limited company, Polynovo now has successfully listed on NYSE in the US and the company is issuing a prospectus to potential investors regarding a new share issue. The prospectus is dated 1 January 2021 and invites the public to apply for 900,000 ordinary shares at $10 per share. The tems of the share issue are $4 on application, $2.50 on allotment, S2 on the first call and $1.50 on a second call. If the issue is oversubscribed the directors can make a pro-rata issue of shares and the excess application money will be applied to allotment and calls. On 1 March 2021 applications close and applications had been received for 1,200,000 shares. A table summarising the applications received is presented below: Shares applied for Paid to Shares Directors allotted 60,000 $10.00 60,000 300,000 $6.50 200,000 840,000 $4.00 640,000 On 15 March the shares were allotted and on 1 April all outstanding allotment money was received. On 10 April share issue costs of S60,000 were paid. On 6 October the first call is made on the ordinary shares and on 31 November all the call money was received except for the call on 20,000 shares. The shares were forfeited on 5 December and reissued at $9.50 (as fully paid) on 31 December with costs associated with the forfeited shares of S1,000 paid on 31 December. Required: a) Prepare a schedule that shows a breakup of the following items: (24 marks) Share Share Cash $4.00 | $2.50 $2.00 $1.50 Sec. Call Refund Applied Allotted S Received Application Allotment First Call Following the case of Polynovo Limited company, Polynovo now has successfully listed on NYSE in the US and the company is issuing a prospectus to potential investors regarding a new share issue. The prospectus is dated 1 January 2021 and invites the public to apply for 900,000 ordinary shares at $10 per share. The tems of the share issue are $4 on application, $2.50 on allotment, S2 on the first call and $1.50 on a second call. If the issue is oversubscribed the directors can make a pro-rata issue of shares and the excess application money will be applied to allotment and calls. On 1 March 2021 applications close and applications had been received for 1,200,000 shares. A table summarising the applications received is presented below: Shares applied for Paid to Shares Directors allotted 60,000 $10.00 60,000 300,000 $6.50 200,000 840,000 $4.00 640,000 On 15 March the shares were allotted and on 1 April all outstanding allotment money was received. On 10 April share issue costs of S60,000 were paid. On 6 October the first call is made on the ordinary shares and on 31 November all the call money was received except for the call on 20,000 shares. The shares were forfeited on 5 December and reissued at $9.50 (as fully paid) on 31 December with costs associated with the forfeited shares of S1,000 paid on 31 December. Required: a) Prepare a schedule that shows a breakup of the following items: (24 marks) Share Share Cash $4.00 | $2.50 $2.00 $1.50 Sec. Call Refund Applied Allotted S Received Application Allotment First Call
Expert Answer:
Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
Posted Date:
Students also viewed these accounting questions
-
Company had 300,000 Ordinary Shares outstanding on 1 January 2020. The following ordinary share transactions occurred during 2020: 1 March, Company issued 60,000 Ordinary Shares. 1 May, Company...
-
6. On January 1, Puckett Company paid $1.6 million for 50,000 shares of Harrison's voting com- mon stock, which represents a 40 percent investment. No allocation to goodwill or other spe- cific...
-
Sewell Bank is one of the many commercial banks and has the simplified balance sheet below. Assets Required Reserves Excess Reserves Loans Government Bonds $2,000 $ 0 $8,000 $10,000 Liabilities...
-
Find the volumes of the solids generated by revolving the regions bounded by the lines and curves about the x-axis. The region between the curve and the x-axis from x = 1/4 to x = 4 y = 1/(2x)
-
During 2013 a company implemented a number of policies aimed at reducing the ages of its customers accounts. In order to assess the effectiveness of these measures, the company randomly selects 10...
-
Precision Builders Construction Company was incorporated by Chris Stoschek. The following activities occurred during the year: a. Received from three investors $60,000 cash and land valued at...
-
What are the building blocks of a sequence diagram?
-
What risks does mike have that need to be considered? Based on how much mike needs to save and what you have gathered from the case, what type of retirement plan would you recommend, if any at all?...
-
On December 31, Rodriguez Company has the following list of account balances. Accounts Payable $ 28,900 Equipment $ 31,100 Accounts Receivable 57,700 Service Revenue 61,800 Accumulated Depreciation,...
-
Go back and quickly review the rules that the Sarbanes-Oxley Act of 2002 placed on the auditing profession as described in this chapter. What do you think are the two or three main purposes of these...
-
Reconsider the Buying Futures Contracts example from earlier in this assignment. Suppose that instead of purchasing futures contracts that the factory manager purchased call options on May corn...
-
You have just sold your house for $950,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $740,000. The mortgage is currently exactly 18.5...
-
See the below data: Respondent Gender Height Weight Age 1 F 63.30 156.30 Less than 18 years 2 F 57.00 100.70 Less than 18 years 3 M 63.00 156.30 Less than 18 years 4 M 71.00 237.10 Less than 18 years...
-
A square footing of size 8 8 m is founded at a depth of 2 m below the ground surface in loose to medium dense sand. Standard penetration tests conducted at the site gave the following corrected N60...
-
A property could be sold today for $2.08 million. It has a loan balance of $1.16 million and, if sold, the investor would incur a capital gains tax of $266,000. The investor has determined that if it...
-
2. You plan on retiring in 30 years and believe it is time to start making annual contributions to a retirement account. (a) How much will you have in your retirement account if you deposit $2800...
-
Complete the function findHandSum . The function has 3 parameters: an integer, originalRows, between 0 and 9999 inclusive, that gives the initial numbers from Row 1 to Row 4, a string of numbers,...
-
6. (Potential Energy and Conservation of Energy) What should be the spring constant k of a spring designed to bring a 1200-kg car to rest from a speed of 95 km/h so that the occupants undergo a...
-
What is a capitalization rate? What are the different ways of arriving at an overall rate to use for an appraisal?
-
A borrower is making a choice between a mortgage with monthly payments or biweekly payments. The loan will be $200,000 at 6 percent interest for 20 years. a. How would you analyze these alternatives?...
-
What are the differences between the cost and sales comparison approaches to appraising property?
-
What is the relation between degrees Fahrenheit and degrees Rankine? And the relation between degrees Celsius and Kelvin?
-
State Newton's second law as you would apply it to a control mass.
-
Define a 1-pound force in terms of the acceleration it will give to a 1-pound mass. Give a similar definition for a newton in the SI system.
Study smarter with the SolutionInn App