Question
In: Accounting
In July 2020, Worley Ltd calls for public subscriptions for 20 million shares. The issue price...
In July 2020, Worley Ltd calls for public subscriptions for 20 million shares. The issue price per share is $1.20, to be paid in three parts, these being $0.50 on application, $0.40 within one month of the shares being allotted and $0.30 within two months of the first and final call, with the call for final payment being payable on 1 September 2020. By the end of July, when applications close, applications have been received for 24 million shares; that is, 4 million in excess of the amount to be allotted. The shares are allotted on 1 August 2020. Regarding final call for $0.30 per share, it becomes apparent that the holder(s) of 200 000 shares have failed to pay the amount due. As a result, the directors of the company elect to forfeit the shares.
Worley Ltd reissues the shares on 1 October 2020 as fully paid for an amount of $1.00; that is, $0.20 below the original issue price. The costs involved in generating the sale of the shares amount to $5,000.
Required:
Provide the accounting entries to record the issue of Worley Ltd’s shares.
|
Date |
Description |
Debit |
Credit |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Sampras Ltd issues $20 million of convertible notes on 1 July 2020. The notes have a...
Sampras Ltd issues $20 million of convertible notes on 1 July
2020. The notes have a life of 6 yrs and a face value of $20 each.
Annual interest of 5% is payable at the end of each year. The notes
were issued at their face value and each note can be converter into
one ordinary shares in Sampras Ltd at any time over their lives.
Organisations with similar risk profile to Sampras Ltd have issued
debt with similar terms...
Adelaide Briton Ltd was registered on the first of July 2020. The company’s directors issue a...
Adelaide Briton Ltd was registered on the first of July 2020.
The company’s directors issue a disclosure document inviting
applicants for 2 000 000 ordinary shares for an issue price of $1.
The share is payable 60c on application and 20c on allotment.
Adelaide Briton Ltd reserves the right to allot to individual
applicants on a pro rata base, a lesser number of shares than the
number applied for, and may apply excess application monies to the
allotment and to...
On 1 July 2020 S Ltd acquired 60% of the issued shares of P Ltd. During...
On 1 July 2020 S Ltd acquired 60% of the issued shares of P Ltd.
During the year ended 30 June 2021 the following intra group
transactions occurred:
Sales of inventory: P Ltd to S Ltd $200,000 (Cost to P Ltd
$150,000)
Intragroup inventory on hand 30 June 2021: S Ltd held 40% of
the inventory acquired from P Ltd
Intragroup sale of equipment An item of equipment originally
acquired by S Ltd on 1 July 2018 at a cost...
On 1 July 2020 Mango Ltd acquired all the issued shares (cum div.) of Cream Ltd...
On 1 July 2020 Mango Ltd acquired all the issued shares (cum
div.) of Cream Ltd for $450,000. At date of acquisition the equity
of Cream was recorded at:
Share
Capital $200,000
Reserves $100,000
Retained earnings $100,000
The fair value of land was $220,000 (carrying amount
$200,000).
The fair value of equipment was $230,000 (cost $240,000 and
carrying amount $210,000).
On this date the records of Cream Ltd showed goodwill at cost of
$10,000 and dividends payable of $15,000. All other...
On 1 July 2019, Vajra Ltd was incorporated and offered 2,500,000 ordinary shares to the public...
On 1 July 2019, Vajra Ltd was incorporated and offered 2,500,000
ordinary shares to the public at an issue price of $4.00 per share,
with $1.50 payable on application, and $1.50 upon allotment (due
within one month of allotment) and $1.00 payable on another call to
be made at a later date.
The issue is underwritten at a commission of $42,000.
By 31 July 2019, applications had been received for 2,450,000
shares. On 12 August 2019, shares were allotted, and...
1. Soundbird Ltd has 600,000 ordinary shares on issue at 1 July 2019, which is the...
1. Soundbird Ltd has 600,000 ordinary shares on issue at 1 July
2019, which is the beginning of its reporting period. On 1 January
2020, it issued a further 600,000 ordinary shares for cash. On 1
March 2020, Soundbird Ltd repurchased 10,000 shares at fair value
in a market transaction.
Required: What is the correct weighted average number of shares to
use in the earnings per share calculation for the year ended 30
June 2020?
Show all your workings.
2.Rosy...
RCK Ltd issues a prospectus inviting the public to subscribe for 90 million ordinary shares of...
RCK Ltd issues a prospectus inviting the public to subscribe for
90 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 108 million shares during July
2018. The directors allot 90 million shares on 15 August 2018. All
applicants receive shares on a pro rata basis. The amounts payable
on allotment are due by 20 September...
RCK Ltd issues a prospectus inviting the public to subscribe for 90 million ordinary shares of...
RCK Ltd issues a prospectus inviting the public to subscribe for
90 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 108
million shares during July 2018. The directors allot 90 million
shares on 15 August 2018. All applicants receive shares on a pro
rata basis. The amounts payable on allotment are due by 20
September...
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...
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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- . Use the following information to calculate your company's expected return State Probability Return Boom 20%...
- You are considering the following two projects and can only take one. Your cost of capital...
- C++: Write a program that produces truth tables for the following compound propositions. Write the header...
- 1. What is the historical role of investment bankers ? Has this role changed ? Why...
- How were the original Internet requirements met through its design? What are the two main requirements...
- discuss crowdfunding on platforms: What features of the services incorporate virality? What are some of the...
- A textbook of mass 2.08 kg rests on a frictionless, horizontal surface. A cord attached to...
ADVERTISEMENT