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Wool Jumpers Ltd has received $4,100,000 from investors, who have applied for shares yet to be issued. However, the company only wanted $3,600,000, which
Wool Jumpers Ltd has received $4,100,000 from investors, who have applied for shares yet to be issued. However, the company only wanted $3,600,000, which equates to 900,000 shares at $4.00 per share. The following transactions related to the company's equity are yet to be recorded: (a) On 5 February 2022, Wool Jumpers Ltd issues 900,000 shares to investors. (b) On 14 February 2022, money from these investors that has been held in trust is transferred to the company's bank account. (c) On 21 February 2022, money is returned to investors who applied for shares but were not issued any shares. Required: Prepare journal entries for the above events. Use the answer template below or upload your answer in a Word document. A BIT G # U x2 x Account Names Debit Credit Wool Jumpers Ltd's General Journal: Date 5/2/2022 14/2/2022 (To record the issuing of shares to investors) 21/2/2022 (To record the transfer of money held in trust) (To record the return of excess money held in trust to investors) = I 5 3 marks
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