Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question One Aberdeen Ltd is listed on the Australian Securities Exchange. The directors of Aberdeen Ltd announced a public offer of shares. Following is a

image text in transcribed

Question One Aberdeen Ltd is listed on the Australian Securities Exchange. The directors of Aberdeen Ltd announced a public offer of shares. Following is a list of transactions summarising the public offer of shares: On 1 September 2021, Aberdeen Ltd receives application money of $800 000 from investors wanting to acquire shares of the company. On 14 September 2021, the company allots 2 million shares for a price of $1.00 as partly paid to $0.40 per share. On the same day, the call for the balance of the share price of $0.60 is made by the company. The call money is due in one month. On 1 October 2021, the holders of 1 800 000 shares have made the payment that is due on the call. On 10 October 2021, the directors of Aberdeen Ltd decide to forfeit the remaining 200 000 shares where the application money was paid but the applicants failed to pay the call. On 15 October 2021, the forfeited shares are reissued as fully paid and sold in an auction. Aberdeen Ltd receives $0.80 per share. The costs of conducting the sale were $2000. On 25 October 2021, the balance of forfeited shares account paid the applicants paid the application but failed to pay the call. REQUIRED Prepare all journal entries necessary to account for the issue of the shares. In your answer narratives for journal entries are not necessary but you must include the date of the journal entry as included in the question. (19 marks)

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

Managerial Accounting The Cornerstone Of Business Decision-making, , (6 Months)

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

7th Edition

1337115924, 9781337115926

More Books

Students also viewed these Accounting questions