Problem 3: Suppose On 1 Jan. 2019 XYZ Corporation issued 1 million ordinary shares having face...

Problem 3:

Suppose On 1 Jan. 2019 XYZ Corporation issued 1 million ordinary shares having face value of $1 each at an issue price of $2.5 per share. As per the terms of the issue, the full amount due had been received by the corporationby 10 Jan. 2019. The Corporationreceived 200% subscription on its share issue. By 31 Jan, the Corporation completed allotment of 1 million shares and returned the excess money to its investors.

As on 31 Jan 2019

What is the issued capital of the corporation?
What is the subscribed capital of the corporation?
Has the issue been oversubscribed or undersubscribed?
How much cash did the corporation receive on application?
What is the paid-up share capital of the corporation?
What is the amount in its share premium account?
How much cash does the corporation hold after allotment on 31 Jan 2019?
What are the components of balance sheet as on31 Jan 2019?

BALANCE SHEET Extract

	31 Jan 2019
Assets:
Cash
Other assets	0
Total Assets
Liabilities:
Total liabilities	0
Shareholders’ Equity:
Share capital
Additional paid in capital
Total Shareholders’ equity
Balance sheet total

Expert Solution

ekkarill92 answered 1 year ago

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