Question
A trial balance taken from GoFresh Pty Ltds accounting records at 30 September 2019, showed the following account balances: GoFresh Pty Ltd Trial Balance as
A trial balance taken from GoFresh Pty Ltds accounting records at 30 September 2019, showed the following account balances:
GoFresh Pty Ltd
Trial Balance
as at 30 September 2019
Account | Debit | Credit |
Share capital (560 000 shares fully paid) | 560,000 | |
General reserve | 192,000 | |
Retained earnings | 94,240 | |
Tax payable | 24,000 | |
Accounts payable | 96,720 | |
Loan | 144,000 | |
Bank overdraft | 51,120 | |
Property, plant and equipment (net) | 712,640 | |
Accounts receivable | 72,160 | |
Inventory | 376,480 | |
Prepayments | 800 | |
$1,162,080 | $1,162,080 |
At a meeting of directors on 1 October, it was decided to issue additional shares to fund future operations. Accordingly a prospectus was issued on 10 October offering 200,000 ordinary shares at $3 each to the public, payable $2.50 per share on application and the remainder in one call when required.
By 30 November, applications were received from the public for 224,000 shares. On 3 December the application money paid on 24,000 shares was refunded to unsuccessful applicants. The rest of the shares were allotted to the successful applicants.
On 31 January 2020, an interim dividend of 8c per share was paid out of retained earnings on all fully paid equivalent shares pro rata.
On 20 February, the remaining call on the shares was made, and all cash was received on the call by 31st March, except for the holder of 6,000 shares.
Required:
a) Prepare the general journal entries to record the information above
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