Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare the journal entries to record these transactions of Princess Ltd. (Show all workings.) Answer the question in the space provided below. On 1 August

image text in transcribed
Prepare the journal entries to record these transactions of Princess Ltd. (Show all workings.) Answer the question in the space provided below. On 1 August 2018, Princess Ltd issued a prospectus inviting applications for 400 000 ordinary shares to the public at an issue price of $24. payable as follows: 58 on application (Gue by closing date of 1 November $10 on allotment (due 1 December) 56 on future calls (date to be determined by the directors) By 1 November, applications had been received for 430 000 ordinary shares of which applicants for 50 000 shares forwarded the full $24 per share, applicants for 150 000 shares forwarded $18 per share and the remainder forwarded only the application money. At a directors' meeting on 7 November, it was decided to allot shares in full to applicants who had paid the either $24 or $18 on application, to reject applications for 10 000 shares and to proportionally allocate shares to all remaining applicants. According to the company's constitution, all surplus money from application can be transferred to Allotment account. Share issue costs of $11 000 were also paid on 7 November. All outstanding allotment money was received by the due date. The call was made on 1 February 2019 with money due by 1 March. All money was received by the due date. On 13 February 2019, the directors issued a prospectus inviting applications for 5 000 5% unsecured debentures of $100 each, payable in full on application. By 22 February. the company received applications for 4 600 of the debentures and they were subsequently allotted. On 30 June 2019, the company decided to redeem the notes in cash on the open market. ANSWER: Workings Allocation of money received on application No. of Shares No. of Shares amplied for A Money Rere Application Allotment Call Prepare the journal entries to record these transactions of Princess Ltd. (Show all workings.) Answer the question in the space provided below. On 1 August 2018, Princess Ltd issued a prospectus inviting applications for 400 000 ordinary shares to the public at an issue price of $24. payable as follows: 58 on application (Gue by closing date of 1 November $10 on allotment (due 1 December) 56 on future calls (date to be determined by the directors) By 1 November, applications had been received for 430 000 ordinary shares of which applicants for 50 000 shares forwarded the full $24 per share, applicants for 150 000 shares forwarded $18 per share and the remainder forwarded only the application money. At a directors' meeting on 7 November, it was decided to allot shares in full to applicants who had paid the either $24 or $18 on application, to reject applications for 10 000 shares and to proportionally allocate shares to all remaining applicants. According to the company's constitution, all surplus money from application can be transferred to Allotment account. Share issue costs of $11 000 were also paid on 7 November. All outstanding allotment money was received by the due date. The call was made on 1 February 2019 with money due by 1 March. All money was received by the due date. On 13 February 2019, the directors issued a prospectus inviting applications for 5 000 5% unsecured debentures of $100 each, payable in full on application. By 22 February. the company received applications for 4 600 of the debentures and they were subsequently allotted. On 30 June 2019, the company decided to redeem the notes in cash on the open market. ANSWER: Workings Allocation of money received on application No. of Shares No. of Shares amplied for A Money Rere Application Allotment Call

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

Quicken 2015 For Dummies

Authors: Stephen L. Nelson

1st Edition

1118920139, 978-1118920138

More Books

Students also viewed these Accounting questions

Question

=+a) Write the regression model.

Answered: 1 week ago

Question

Does this value make me feel good about myself?

Answered: 1 week ago

Question

Waiting for a reply on my request from yesterday AM. Thank you.

Answered: 1 week ago

Question

Discuss how selfesteem is developed.

Answered: 1 week ago