Question
Match the related journal entry for the below independent situation. On theapplicationdate, the company AB fully received $6,000,000 for issuing 600,000 shares. Answer 1 Choose...
Match the related journal entry for the below independent situation.
On theapplicationdate, the company AB fully received $6,000,000 for issuing 600,000 shares.
Answer 1
Choose...
Dr First and Final Call A/C 1,500,000 Cr Share capital 1,500,000
Dr Cash trust 600,000 Cr Application 600,000
Dr Cash A/C 150,000 Cr Cash trust A/C 150,000
Dr Cash trust 6,000,000 Cr Application 6,000,000
Dr Cash trust A/C 150,000 Cr Cash A/C 150,000
Dr Application 6,000,000 Cr Cash trust 6,000,000
Dr Cash trust A/C 1,000,000 Cr Application 1,000,000
Dr Application A/C 1,000,000 Cr Cash Trust 1,000,000
Dr Share capital 1,500,000 Cr First and Final Call A/C 1,500,000
The company AB issued 100,000 fully paid shares on 30 June 2020 at $50 per share.By 1 September, applications were received for 120000 shares and the management decided to refund the excess money received. The journal entry torecordrefunded amount would be:
Answer 2
Choose...
Dr First and Final Call A/C 1,500,000 Cr Share capital 1,500,000
Dr Cash trust 600,000 Cr Application 600,000
Dr Cash A/C 150,000 Cr Cash trust A/C 150,000
Dr Cash trust 6,000,000 Cr Application 6,000,000
Dr Cash trust A/C 150,000 Cr Cash A/C 150,000
Dr Application 6,000,000 Cr Cash trust 6,000,000
Dr Cash trust A/C 1,000,000 Cr Application 1,000,000
Dr Application A/C 1,000,000 Cr Cash Trust 1,000,000
Dr Share capital 1,500,000 Cr First and Final Call A/C 1,500,000
The company AB issued 500,000 shares on 1 July 2020at an issue price of $8, payable $3 on theapplication, $2 on the allotment, and $3 on a future call.
The correct journal entry to capitalize future call money would be:
Answer 3
Choose...
Dr First and Final Call A/C 1,500,000 Cr Share capital 1,500,000
Dr Cash trust 600,000 Cr Application 600,000
Dr Cash A/C 150,000 Cr Cash trust A/C 150,000
Dr Cash trust 6,000,000 Cr Application 6,000,000
Dr Cash trust A/C 150,000 Cr Cash A/C 150,000
Dr Application 6,000,000 Cr Cash trust 6,000,000
Dr Cash trust A/C 1,000,000 Cr Application 1,000,000
Dr Application A/C 1,000,000 Cr Cash Trust 1,000,000
Dr Share capital 1,500,000 Cr First and Final Call A/C 1,500,000
The company AB issued 50,000fully paid shares at $3per share. However, on the close ofapplicationdate,received applications for 75,000 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?
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
4th Canadian edition
1118856996, 978-1118856994
