The XYZ Company Ltd was registered on 2 January 200A. The company immediately offered 4,000,000 ordinary...

The XYZ Company Ltd was registered on 2 January 200A. The company immediately offered 4,000,000 ordinary shares for public subscription at a price of $2.00 each on the following instalment basis:

60¢ per share on application (by 31 January)
60¢ per share on allotment (payable by 15 February)
40¢ per share on Call No. 1 (called on 3 March, due and collected on 17 March)
40¢ per share on Call No. 2 (called on 1 April, due and collected on 15 April). Applications were received for 4,000,000 ordinary shares by 15 January and the directors allotted the 4,000,000 ordinary shares on 31 January 200A. All calls were fully paid.

You are required to prepare:

a) The relevant journal entries (cash receipts entries may be entered in the general journal).

b) A Balance Sheet as at 30 April 200A. The Statement of Financial Position should be appropriately headed.

Solutions

Expert Solution

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

On 1 March 2020, Black Ltd was registered and offered 500 000 ordinary shares to the...

On 1 March 2020, Black Ltd was registered and offered 500 000 ordinary shares to the public at an issue price of $6, payable as follows: $3 on application $2 on allotment $1 on final call The share issue was successful, and all the allotment money was received by the due date. The final call was made on 1 November with money due by 30 November. All money was received on the due date except for the holder of 15...

XYZ Ltd is an all equity company financed by 210,000 ordinary shares which have a market...

XYZ Ltd is an all equity company financed by 210,000 ordinary shares which have a market value of $2.50 per share. The company has earnings before interest and tax (EBIT) of $120,000 and a tax rate of 30%. i. What is the current market value of the company? ii. What is the current cost of ordinary equity (return on equity)? If the company raises $200,000 of long term debt at a cost of 9% and uses the proceeds to retire...

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...

The Income Statement for XYZ Company for 2016 and 2017 is as follows: 2017 Sales $4,000,000...

The Income Statement for XYZ Company for 2016 and 2017 is as follows: 2017 Sales $4,000,000 Cost of Goods Sold 2,500,000 Gross Profit 1,500,000 Selling Expense 600,000 Administrative Expense 200,000 Total Operating Expense 800,000 Income from Operations 700,000 Income Tax Expense 50,000 Net Income 650,000 2016 $3,500,000 2,400,000 1,100,000 700,000 150,000 850,000 250,000 20,000 230,000 Instructions: Using the above comparative horizontal analysis for ABC Company.

A newly registered company, Golden Mile Investments Ltd, has issued a prospectus dated 1st January 2018...

A newly registered company, Golden Mile Investments Ltd, has issued a prospectus dated 1st January 2018 inviting the public to apply for the following classes of shares. Both classes of shares have voting rights: 216,000 Ordinary A shares at $6 per share. The terms of the shares on issue are $2.50 on application, $1.50 on allotment, $1.20 on the first call and $0.80 on the second call. 200,000 Ordinary B shares at $3 per share, $2.00 on application and $1.00...

Accounting for Bonds Issued at a Discount On January 1, 2017, Edward Elric Ltd. issued $4,000,000,...

Accounting for Bonds Issued at a Discount On January 1, 2017, Edward Elric Ltd. issued $4,000,000, 8%, 10-year bonds at $3,508,1431. This price resulted in an effective-interest rate of 10% on the bonds. Edward Elric Ltd. uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on January 1. Required: (Round all computations to the nearest dollar.) 1. Prepare the journal entry to record the issuance of the bonds on January 1, 2017. 2. Prepare...

July 1 The company decided that 1,500,000 ordinary shares were to be offered to the public...

July 1 The company decided that 1,500,000 ordinary shares were to be offered to the public at an issue price of $3, payable as follows: $1.50 on application (due 1 August) $0.50 on allotment (due 30 August) $1 on future calls August 1 Applications had been received for 1,750,000 shares of which applicants for 300,000 shares forwarded the full $3 per share, the remainder paying only the application money. August 5 At the directors’ meeting it was decided to allot...

Maxi Berhad offered 1 million ordinary shares for issue to public on 1 January 2018 having...

Maxi Berhad offered 1 million ordinary shares for issue to public on 1 January 2018 having face value of RM1 each at an issue price of RM1.50 per share. Maxi Berhad requires the equity injection to finance a new project. The minimum amount of subscription necessary for the project is RM1,250,000. As per the terms of the issue of shares, RM1.50 per share was to be received in full from the applicantson 30November 2018. A total amount of RM3,000,000 was...

Koala Ltd is a company registered in Australia. It controls a subsidiary company residing in India....

Koala Ltd is a company registered in Australia. It controls a subsidiary company residing in India. The subsidiary operates within India and sells its goods and purchases its raw materials in India. It is estimated that 80% of Koala’s sales are generated by its subsidiary based in India. The remaining balance of sales is generated by their operations based in Australia. Seventy percent of the shareholders of Koala Ltd are based in Australia. Required Determine the functional currency of Koala...

Patterson Ltd was registered on 18 March 2017, as a company with a constitution limiting the...

Patterson Ltd was registered on 18 March 2017, as a company with a constitution limiting the shares that could be offered to; 4 000 000 Ordinary A shares and 2 000 000 non-voting Ordinary B shares. The company issued a prospectus dated 12 May inviting the public to apply for 3 000 000 Ordinary A class shares at $2.50 per share. The terms of the shares on issue are $1.00 on application, $1.00 on allotment and $0.50 to be called...

Subjects