Question
Match the related journal entry for the below independent situation. On the application date, the company AB fully received $6,000,000 for issuing 600,000 shares. Answer
Match the related journal entry for the below independent situation.
| On the application date, the company AB fully received $6,000,000 for issuing 600,000 shares. | Answer 1Choose...Dr Cash A/C 150,000 Cr Cash trust A/C 150,000Dr Cash trust 6,000,000 Cr Application 6,000,000Dr Cash trust A/C 1,000,000 Cr Application 1,000,000Dr Cash trust 600,000 Cr Application 600,000Dr Application 6,000,000 Cr Cash trust 6,000,000Dr Application A/C 1,000,000 Cr Cash Trust 1,000,000Dr Share capital 1,500,000 Cr First and Final Call A/C 1,500,000Dr First and Final Call A/C 1,500,000 Cr Share capital 1,500,000Dr Cash trust A/C 150,000 Cr Cash A/C 150,000 |
| The company AB issued 100,000 fully paid shares on 30 June 2020 at $50 per share. By 1 September, applications were received for 120 000 shares and the management decided to refund the excess money received. The journal entry to record refunded amount would be: | Answer 2Choose...Dr Cash A/C 150,000 Cr Cash trust A/C 150,000Dr Cash trust 6,000,000 Cr Application 6,000,000Dr Cash trust A/C 1,000,000 Cr Application 1,000,000Dr Cash trust 600,000 Cr Application 600,000Dr Application 6,000,000 Cr Cash trust 6,000,000Dr Application A/C 1,000,000 Cr Cash Trust 1,000,000Dr Share capital 1,500,000 Cr First and Final Call A/C 1,500,000Dr First and Final Call A/C 1,500,000 Cr Share capital 1,500,000Dr Cash trust A/C 150,000 Cr Cash A/C 150,000 |
| The company AB issued 500,000 shares on 1 July 2020 at an issue price of $8, payable $3 on the application, $2 on the allotment, and $3 on a future call. The correct journal entry to capitalize future call money would be: | Answer 3Choose...Dr Cash A/C 150,000 Cr Cash trust A/C 150,000Dr Cash trust 6,000,000 Cr Application 6,000,000Dr Cash trust A/C 1,000,000 Cr Application 1,000,000Dr Cash trust 600,000 Cr Application 600,000Dr Application 6,000,000 Cr Cash trust 6,000,000Dr Application A/C 1,000,000 Cr Cash Trust 1,000,000Dr Share capital 1,500,000 Cr First and Final Call A/C 1,500,000Dr First and Final Call A/C 1,500,000 Cr Share capital 1,500,000Dr Cash trust A/C 150,000 Cr Cash A/C 150,000 |
| The company AB issued 50,000 fully paid shares at $3 per share. However, on the close of application date, received applications for 75,000 shares. If the company refunded the excess money, what would be the correct journal entry to transfer money from Cash trust A/C to official Business cash A/C? | Answer 4Choose...Dr Cash A/C 150,000 Cr Cash trust A/C 150,000Dr Cash trust 6,000,000 Cr Application 6,000,000Dr Cash trust A/C 1,000,000 Cr Application 1,000,000Dr Cash trust 600,000 Cr Application 600,000Dr Application 6,000,000 Cr Cash trust 6,000,000Dr Application A/C 1,000,000 Cr Cash Trust 1,000,000Dr Share capital 1,500,000 Cr First and Final Call A/C 1,500,000Dr First and Final Call A/C 1,500,000 Cr Share capital 1,500,000Dr Cash trust A/C 150,000 Cr Cash A/C 150,000 |
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