Corporate Accounting

Q1

Mango Ltd was registered on 1 March 2018. The directors decided to issue 500 000 ordinary shares on 31 March 2018, at an issue price of $5 payable $3 on application, $2 on allotment. The company received applications for 510 000 shares on 30 April 2018 and sent letters of regret and refunds to unsuccessful applicants of 10 000 shares. Legal costs of issuing the shares, $12 000, were paid.

Required

Prepare journal entries and ledger accounts to record the above transactions.

MANGO LTD

General Journal

2018

April 30

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