Kam Ltd has the following equity balances at the end of June 2022. Share Capital A...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Kam Ltd has the following equity balances at the end of June 2022. Share Capital A 100,000 shares issued at $5 paid to $2.6 Share Capital B 100,000 shares fully paid @ $4 Total $260,000 400,000 $660,000 Prepare journal entries to account for the following transactions: 30 Nov 2022 The company makes a 1-for-5 rights offer to its 'B' ordinary shareholders. The rights are renounceable and allow holders to obtain 'B' ordinary shares for $2 per share, payable in full on application. The holders of 20 000 'B' ordinary shares accept the rights offer by the expiry date. The shares are duly allotted and all money is received. 25 Dec 2022 A call of $2.40 per share is made on all 'A' ordinary shares. All call money except that owing by the holder of 10,000 shares is received by 31 January. Shares on which calls are unpaid are forfeited and cancelled, as per the company's constitution. Kam Ltd has the following equity balances at the end of June 2022. Share Capital A 100,000 shares issued at $5 paid to $2.6 Share Capital B 100,000 shares fully paid @ $4 Total $260,000 400,000 $660,000 Prepare journal entries to account for the following transactions: 30 Nov 2022 The company makes a 1-for-5 rights offer to its 'B' ordinary shareholders. The rights are renounceable and allow holders to obtain 'B' ordinary shares for $2 per share, payable in full on application. The holders of 20 000 'B' ordinary shares accept the rights offer by the expiry date. The shares are duly allotted and all money is received. 25 Dec 2022 A call of $2.40 per share is made on all 'A' ordinary shares. All call money except that owing by the holder of 10,000 shares is received by 31 January. Shares on which calls are unpaid are forfeited and cancelled, as per the company's constitution.
Expert Answer:
Answer rating: 100% (QA)
Answer Journal Entries for Kam Ltd 1 Nov 30 2022 Rights ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
A steel manufacturing plant with a $1,100,000 payroll sustains workers' compensation losses of $90,000 in 1997. The experience modification factor for this plant is 1.4, and the manual premium is...
-
In a town, 45% of all households have a pet, 35% have children, and 40% of all households with children have a pet. Using these definitions: P = event household has a pet C = event household has...
-
This lesson provides a decision-making guide to help you integrate what you've learned in previous lessons. The main benefit of this guide is that it will force you to think more clearly about the...
-
Under what circumstances should derived associations be used?
-
The value of a log is based on the number of board feet of lumber the log may contain. (A board foot is the equivalent of a piece of wood 1 inch thick, 12 inches wide, and 1 foot long. For example, a...
-
You borrow $165,000 to buy a house. The mortgage rate is 4.5 percent and the loan period is 30 years. Payments are made monthly. If you pay the mortgage according to the loan agreement, how much...
-
A path between two vertices of a graph that visits each vertex of the graph exactly once is called an Euler path. a. True b. False
-
Williwonks Chocolates of St. Louis makes an assortment of chocolate candy and candy novelties. The company has six in-city stores, five stores in major metropolitan airports, and a small mail-order...
-
Office supplies had a beginning balance on January 1 of $ 7 , 0 0 0 . Supplies costing $ 1 8 , 0 0 0 were purchased during the year and recorded as office supplies in the appropriate permanent...
-
Below is the taxpayer information for Sharon and Robert Dolan. They have two children who lived with them, David ( SS# 1 5 4 - 1 3 - 5 8 2 6 ) , age 1 3 ( date of birth: October 1 1 , 2 0 1 0 ) ,...
-
Account Amount (AED) Cash Accounts receivable Land 150,000 25,000 45,000 Supplies 7,900 Prepaid Insurance 50,000 Merchandise inventory 23,000 Accumulated depreciation Equipment 13,000 Equipment...
-
Mr.sicilian opened GETINMYBELLY.COM a wholesale grocery and pizza company .since Mr.sicilianonly sells to retailers, he does not have charge sales tax to her customers. Mr.sicilianuses a sales...
-
Why has department store business declined in the US along with department store business in England, Germany, and Italy? How has the profitability paradox affected this decline in profits? How has...
-
How are just-in-time (JIT)and Materials Requirements Planning (MRP) related to maintaining proper levels of inventory?
-
Zoso is a rental car company that is trying to determine whether to add 25 cars to its fleet. The company fully depreciates all its rental cars over five years using the straight-line method. The new...
-
Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard Selling price per unit $ 250...
-
10 6-18 PLANT-WIDE, DEPARTMENT, AND ACTIVITY-COST RATES. ACCLAIM INC. MAKES TWO STYLES OF TROPHIES, BASIC AND DELUXE, AND OPERATES AT CAPACITY. ACCLAIM DOES LARGE CUSTOM ORDERS. ACCLAIM BUDGETS TO...
-
The following selected accounts and normal balances existed at year-end. Notice that expenses exceed revenue in this period. Make the four journal entries required to close the books: Accounts...
-
Examine the cash flow measures in requirement 2 of the review problem in this chapter. Discuss the meaning of these ratios. Computing Cash Flows from Operating Activities: Indirect Method
-
During 20x7, Arizona Company issued $500,000 in long-term bonds at 96, repaid $75,000 of bonds at face value, paid interest of $40,000, and paid dividends of $25,000. Prepare the cash flows from the...
-
Lower of Cost and Net Realizable Value} Meredith's Appliance Store has the following data for the items in its inventory at the end of the accounting period: \section*{Required:} 1. Compute the...
Study smarter with the SolutionInn App