Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On 1 September 2020, New Angelia Ltd has on issue 80,000 ordinary $10 ($4.50 on application and $3.50 on allotment) shares which have been called

On 1 September 2020, New Angelia Ltd has on issue 80,000 ordinary $10 ($4.50 on application and $3.50 on allotment) shares which have been called to $2.00 per share. All call money is due by 30 September.

On 30 September, call money owing on 70,000 shares was received by due date.

The shares on which the call money was unpaid were forfeited on 5 October 2020. The constitution states that the money previously received from the shareholders who had their shares forfeited will be refunded back to the shareholders.

The 15 October, the forfeited shares were reissued at $9.00 fully paid to $10.00. The cost associated with the reissuing is $1,000.

The remaining balance on the forfeited share account was refund back to the shareholders on 30 October.

Question: journal entries to record the above transactions. Exclude journal narrations.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Mcgraw Hill 36 Hour Course In Finance For Non Financial Managers

Authors: Robert Cooke

2nd Edition

0071425462, 978-0071425469

More Books

Students also viewed these Accounting questions