Question

Problem 2 According to its Articles of Incorporation,ABC PLC has the right to raise 15 million...

Problem 2

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 Corporation’s 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.

Suppose On 1 Jan. 2019, the corporation issued 1 million ordinary shares having face value of $1 each at an issue price of $1.5 per share. As per the terms of the issue, $1.25 per share had been received by the corporation by 10 Jan. 2019 while the remaining amount was received in full on 30 June 2019. The corporation received 100% subscription on its share issue.

As on 10 Jan 2019

  1. What is the issued capital of the corporation?
  2. What is the subscribed capital of the corporation?
  3. What is the paid-up share capital of the corporation?
  4. What is the amount in its share premium account?

As on 30 June 2019

  1. Has the issue been oversubscribed or undersubscribed?
  2. What is the paid-up share capital of the corporation?
  3. What is the amount in its share premium account?
  4. How much cash does the corporation hold on 30 june 2019?
  5. Show the journal entries on 10 Jan. 2019 and 30 June 2019
  6. Show the changes in the balance sheet on 10 Jan. 2019 and 30 June 2019

JOURNAL ENTRIES

Date

Account

Debit/Credit

Amount

10 Jan 2019

30 June 2019

CHANGES IN THE BALANCE SHEET

31st Dec 2018

10th Jan 2019

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
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of...
Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The terms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month of allotment. Applications are received for 36 million shares during July 2019. The directors allot 30 million shares on 15 August 2019. The shares were allotted on a first-come, first-serve basis. The directors refunded the application money for 6 million shares...
Problem 11-1A DeLong Corporation was organized on January 1, 2017. It is authorized to issue 15,000...
Problem 11-1A DeLong Corporation was organized on January 1, 2017. It is authorized to issue 15,000 shares of 8%, $100 par value preferred stock, and 521,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 81,500 shares of common stock for cash at $6 per share. Mar. 1 Issued 4,400 shares of preferred stock for cash at $105 per share. Apr. 1 Issued...
In January 2018, Gardner Corporation was authorized to issue 100,000 shares of $10 par value common...
In January 2018, Gardner Corporation was authorized to issue 100,000 shares of $10 par value common stock and $50,000 shares of $80 par, 4 percent, preferred the journal entries for the following transactions: a) March Issued 25,000 shares of common stock for $21 per share for cash. date Description Debitt Credit b) March 1 Issued 5,000 shares of preferred stock for $90 per share for cash. Date Description Debit Credit c) June 1 Purchased 400 shares of common stock as...
On Dec 31, 2018, the balance sheets of Paper Inc. and Scissors Inc. were as follows:...
On Dec 31, 2018, the balance sheets of Paper Inc. and Scissors Inc. were as follows: Paper Inc Scissors Inc Cash and Short-Term Securities $400,000 $ 25,000 Inventory $ 50,000 $ 10,000 Plant and Equipment (net) $300,000 $120,000 Total Assets $750,000 $155,000 Current Liabilities $ 75,000 $ 20,000 Bonds Payable $100,000 $ 30,000 Common Shares $150,000 $ 55,000 Retained Earnings $425,000 $ 50,000 Total Liabilities and Equity $750,000 $155,000 On that date, the fair values of Scissors's Assets and Liabilities...
XYZ Ltd is finalising the calculation of its basic earnings per share. The entity has a...
XYZ Ltd is finalising the calculation of its basic earnings per share. The entity has a profit before tax of $20,000,000 and a profit after tax of $14,000,000. It paid a dividend of $1000,000 to preference shareholders out of this profit. The preference shares are classified as equity. XYZ Ltd provides the following details: At 1 July 2019 XYZ Ltd had a total of 5,000,000 ordinary shares on issue. On 1st September 2019, XYZ Ltd issued a further fully paid...
Question 2 Oriole Company sold $5,800,000, 14%, 15-year bonds on January 1, 2019. The bonds were...
Question 2 Oriole Company sold $5,800,000, 14%, 15-year bonds on January 1, 2019. The bonds were dated January 1, 2019, and paid interest on January 1. The bonds were sold at 97. Prepare the journal entry to record the issuance of the bonds on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2019 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO...
Borner Communications’ articles of incorporation authorized the issuance of 130 million common shares. The transactions described...
Borner Communications’ articles of incorporation authorized the issuance of 130 million common shares. The transactions described below effected changes in Borner’s outstanding shares. Prior to the transactions, Borner’s shareholders’ equity included the following: Shareholders’ Equity ($ in millions) Common stock, 100 million shares at $1 par $ 100 Paid-in capital—excess of par 300 Retained earnings 210 Required: Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares), record the appropriate journal entry...
Tem Ora Ltd supplied the following information on its shareholders’ equity as at 30 June 2015....
Tem Ora Ltd supplied the following information on its shareholders’ equity as at 30 June 2015. Tem Ora Ltd Balance Sheet as at 30 June 2015 (extract) Shareholders’ equity $ $ Capital (400,000 ordinary shares paid to $ 1.00) 400,000 Capital (100,000 7% preference shares paid to $2.00 each) 200,000 Retained earnings 165,000 Dividend equalisation reserve 150,000 Total shareholders’ equity 915,000 Additional information: Profit after tax for the year ended 30 June 2016 was $250,000; On 29 July 2015, buildings...
Torche Corporation Balance Sheet As of January 3, 2018 (amounts in thousands) Cash 14,700 Accounts Payable...
Torche Corporation Balance Sheet As of January 3, 2018 (amounts in thousands) Cash 14,700 Accounts Payable 2,400 Accounts Receivable 4,800 Debt 3,700 Inventory 3,800 Other Liabilities 5,000 Property Plant & Equipment 15,800 Total Liabilities 11,100 Other Assets 900 Paid-In Capital 6,000 Retained Earnings 22,900 Total Equity 28,900 Total Assets 40,000 Total Liabilities & Equity 40,000 Transfer the journal entries to T-accounts for the transactions below, compute closing amounts for the T-accounts, and construct a final balance sheet to answer the...
Ruston Company Balance Sheet As of January 24, 2019 (amounts in thousands) Cash 9,000 Accounts Payable...
Ruston Company Balance Sheet As of January 24, 2019 (amounts in thousands) Cash 9,000 Accounts Payable 1,200 Accounts Receivable 3,400 Debt 3,600 Inventory 5,100 Other Liabilities 2,100 Property Plant & Equipment 17,500 Total Liabilities 6,900 Other Assets 600 Paid-In Capital 5,900 Retained Earnings 22,800 Total Equity 28,700 Total Assets 35,600 Total Liabilities & Equity 35,600 Record the transactions in a journal, transfer the journal entries to T-accounts, compute closing amounts for the T-accounts, and construct a balance sheet to answer...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT