QUESTION 1: FINANCING COMPANY OPERATIONS (15 MARKS)

On 1 July 2019, XYZ Ltd issued a prospectus inviting applications for 100000 ordinary shares, at an issue price of $4, payable $3 on application and $1 on future call(s), dates to be determined by the directors. By 1 September, applications were received for 110000 shares with $3 paid per share. On 6 September, the directors allotted 100000 shares. Refunds were made to applicants for 10000 shares. Share issue costs of $1 000 were also paid on the same date. On 1 February 2020, a first and final call for $1 was made. All of the call money was received by 1 March 2020.

Required

Prepare journal entries to record the above transactions.

QUESTION 1: FINANCING COMPANY OPERATIONS (15 MARKS) On 1 July 2019, XYZ Ltd issued a prospectus inviting applications for 100 000 ordinary shares, at an issue price of $4, payable $3 on application and $1 on future call(s), dates to be determined by the directors. By 1 September, applications were received for 110 000 shares with $3 paid per share. On 6 September, the directors allotted 100 000 shares. Refunds were made to appli- cants for 10 000 shares. Share issue costs of $1 000 were also paid on the same date. On 1 February 2020, a first and final call for $1 was made. All of the call money was received by 1 March 2020. Required Prepare journal entries to record the above transactions. DATE ACCOUNT NAME DR ($) CR (S)