Problem 1

According to its Articles of Incorporation ABC PLC has the right to raise 15 million shares having a face value of $1 each during its lifetime. The Corporations balance sheet shows a share capital of 2 million ordinary shares on 31 Dec 2018 having a face value of $1 each. It had cash worth $0.6 million and other assets to the value of $1.8 million. Liabilities were valued at $0.4 million.

On 1 Jan. 2019, the corporation issued 1 million ordinary shares having face value of $1 each issued at par for cash.The corporation received 90% subscription from its investors by 10 Jan, which was the date when the issue closed.

As on 31 Dec 2018

1. What is ABC PLCs authorized share capital?
2. What is the paid-up share capital of the corporation?
3. What is the balance sheet total of the corporation?

As on 30 June 2019

4. Has the issue been oversubscribed or undersubscribed?
5. What is the issued capital of the corporation?
6. What is the subscribed capital of the corporation?
7. What is the paid-up share capital of the corporation?
8. Show the journal entries on 10 Jan. 2019 (below)
1. Show the balance sheet components on 31 Dec 2018 and the changes in the balance sheet on 30 June 2019(below)

JOURNAL ENTRIES

Date	Account	Debit/Credit	Amount
10 Jan 2019

CHANGES IN THE BALANCE SHEET

	31st Dec 2018	30th June 2019
Assets:
Cash
Other assets
Total Assets
Liabilities:
Total liabilities
Shareholders Equity:
Share capital
Additional paid in capital
Total Shareholders equity
Balance sheet total