Question
Match the related journal entry for the below independent situation. On theapplicationdate, the company AB fully received $9,000,000 for issuing 900,000 shares. Answer 1 Choose...
Match the related journal entry for the below independent situation.
On theapplicationdate, the company AB fully received $9,000,000 for issuing 900,000 shares.
Answer 1
Choose...
Dr Application A/C300,000CrCash Trust300,000
Dr Cash trust A/C 100,000Cr Cash A/C100,000
Dr Application 9,000,000Cr Cash trust 9,000,000
Dr Cash A/C400,000Cr Cash trust A/C 400,000
Dr Cash trust A/C900,000CrApplication 900,000
Dr Share capital 800,000Cr First and Final Call A/C 800,000
DrCash trust 700,000Cr Application700,000
Dr First and Final Call A/C 800,000Cr Share capital 800,000
DrCash trust 9,000,000Cr Application9,000,000
The company AB issued 100,000 fully paid shares on 30 June 2020 at $30 per share.By 1 September, applications were received for 110000 shares and the management decided to refund the excess money received. The journal entry torecordrefunded amount would be:
Answer 2
Choose...
Dr Application A/C300,000CrCash Trust300,000
Dr Cash trust A/C 100,000Cr Cash A/C100,000
Dr Application 9,000,000Cr Cash trust 9,000,000
Dr Cash A/C400,000Cr Cash trust A/C 400,000
Dr Cash trust A/C900,000CrApplication 900,000
Dr Share capital 800,000Cr First and Final Call A/C 800,000
DrCash trust 700,000Cr Application700,000
Dr First and Final Call A/C 800,000Cr Share capital 800,000
DrCash trust 9,000,000Cr Application9,000,000
The company AB issued 100,000 shares on 1 July 2020at an issue price of $20, payable $8 on theapplication, $4 on the allotment, and $8 on a future call.
The correct journal entry to capitalize future call money would be:
Answer 3
Choose...
Dr Application A/C300,000CrCash Trust300,000
Dr Cash trust A/C 100,000Cr Cash A/C100,000
Dr Application 9,000,000Cr Cash trust 9,000,000
Dr Cash A/C400,000Cr Cash trust A/C 400,000
Dr Cash trust A/C900,000CrApplication 900,000
Dr Share capital 800,000Cr First and Final Call A/C 800,000
DrCash trust 700,000Cr Application700,000
Dr First and Final Call A/C 800,000Cr Share capital 800,000
DrCash trust 9,000,000Cr Application9,000,000
The company AB issued 80,000fully paid shares at $5per share. However, on the close ofapplicationdate,received applications for 95,000 shares. If the company refunded the excess money, what would be the correct journal entry to transfer moneyfrom Cash trust A/C to official Business cash A/C?
Answer 4
Choose...
Dr Application A/C300,000CrCash Trust300,000
Dr Cash trust A/C 100,000Cr Cash A/C100,000
Dr Application 9,000,000Cr Cash trust 9,000,000
Dr Cash A/C400,000Cr Cash trust A/C 400,000
Dr Cash trust A/C900,000CrApplication 900,000
Dr Share capital 800,000Cr First and Final Call A/C 800,000
DrCash trust 700,000Cr Application700,000
Dr First and Final Call A/C 800,000Cr Share capital 800,000
DrCash trust 9,000,000Cr Application9,000,000
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
