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.

Expert Solution

ekkarill92 answered 2 years ago

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