4.

Coca Cola Amatil capital consisted of 172,000 shares issued at $2.00 and paid to $1.75 per share. On 1 January 2020, the company made a call of $0.25 per share payable by 26 February 2020. At this date, all shareholders had paid the call except the holder of 8,000 shares.

On 15 March, Coca Cola Amatil decided to forfeit the shares on which the call was unpaid. The companys constitution provided for any surplus on resale, after satisfaction of unpaid calls and costs, to be returned to the shareholder whose shares were forfeited.

On 28 March 2020, the 8,000 shares were reissued for $1.90 per share, the shares being credited as paid to $2.00 per share. Costs of reissue amounted to $2,800. What is the correct amount for the refund balance from the forfeited shares liability?

A.

16, 000

B.

2, 800

C.

15, 200

D.

10, 400

5.

ca Cola Amatil capital consisted of 172,000 shares issued at $2.00 and paid to $1.75 per share. On 1 January 2020, the company made a call of $0.25 per share payable by 26 February 2020. At this date, all shareholders had paid the call except the holder of 8,000 shares.

On 15 March, Coca Cola Amatil decided to forfeit the shares on which the call was unpaid. The companys constitution provided for any surplus on resale, after satisfaction of unpaid calls and costs, to be returned to the shareholder whose shares were forfeited.

On 28 March 2020, the 8,000 shares were reissued for $1.90 per share, the shares being credited as paid to $2.00 per share. Costs of reissue amounted to $2,800. Which of the following is a correct entry?

A.

Cr Cash 15,200 and Cr Forfeited shares liability 800

B.

Dr Cash 15,200 and Dr Forfeited shares liability 800

C.

Dr Cash 15,200 and Cr Forfeited shares liability 800

D.

Cr Cash 15,200 and Dr Share capital 800

6.

The equity of Suresh Ltd on 30 June 2019 was as follows:

Share capital (issued at $4, fully paid) Asset revaluation surplus

$

200 000 700 000

Suresh Ltd decided to offer all the shares to their management as options, at an issue price of $0.65 per option. Each option allows the holder to subscribe for one ordinary share at an exercise price of $2.80 per share on or before 1 July 2020. All the options were purchased by management. By 1 July 2020, 80% of the options issued were exercised and shares were issued. The remaining options lapsed.

Which of the following entries could be correct?

A.

Cr Share options by $32, 500

B.

Dr Lapsed options reserve by $6,500

C.

Cr Lapsed options reserve by $6,500

D.

Dr Share capital by $26, 000