Question

In: Accounting

b) As at 30 June 2018, T&P Ltd’s equity accounts are as follow: 400  000 ‘A’...

b) As at 30 June 2018, T&P Ltd’s equity accounts are as follow:

400  000 ‘A’ ordinary shares, issued at $2.50 each, fully paid $ 1 000 000

75  000  6% cumulative preference shares, issued at $3 and paid to $2 $ 150  000

Accumulated losses (12 750)

As the company had incurred a loss for the year ended 30 June 2018, no dividends were declared for that year. The following transactions and events occurred during the year ended 30 June 2020.

2019

July 25

 The directors made the final call of $1 on the preference shares.
Aug 31 All call monies were received except those owing on 5000 preference shares.
Sept 7

The directors resolved to forfeit 5000 preference shares for nonpayment of the call.

The constitution of the company directs that forfeited amounts are not to be refunded to shareholders. The shares will not be reissued.
Nov 1 The company issued a prospectus offering 40  000 ‘B’ ordinary shares payable in two instalments: $3 on application and $2 on 30 November 2022. The offer closed on 30 November.
Nov 30 Applications for 50  000 ‘B’ ordinary shares were received.
Dec 1 The directors resolved to allot the ‘B’ ordinary shares pro rata with all applicants receiving 80% of the shares applied for. Excess application monies were allowed to be held. The shares were duly allotted.
Dec 5 Share issue costs of $8600 were paid.

Required: Prepare general journal entries to record the above transactions.

Solutions

Expert Solution

JULY 25 Preference share final call ..............Dr. 75000

preference share capital 75000

( final call made due)

Aug 31 Bank ...............................................Dr. 70000

calls in arrears.................................Dr. 5000

preference share final call 75000

( amount received on final call except on 5000 shares)

sept7 Preference share capital ..................Dr. 15000   

calls in arrears 5000

share forfeited 10000

( 5000 shares forfeited)

sept 7 share forfeited ....................................Dr 10000

capital reserve 10000

(since this share are not to be reissued hence forfeited amount transferred to capital reserve)

Nov1 NO ENTRY

Nov 30 Bank ..................................................Dr. 150000

Share application 150000

(share application received for 50000 shares)

Dec 1 Share application ...............................Dr. 150000

share capital 120000

share allotment 3000

( shares are allotted on prorata basis excess amount is adjusted towards allotment)

Dec5 share issue cost...............................Dr. 8600

cash 8600

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Wizco Advertising's balance sheet data at May 31, 2018, and June 30, 2018, follow:
Wizco Advertising's balance sheet data at May 31, 2018, and June 30, 2018, follow: May 31, 2018June 30, 2018Total Assets$122,000$287,000Total Liabilities66,000144,000For each of the following situations that occurred in June 2018 with regard to the owner's contributions and withdrawals, compute the amount of net income or net loss during June 2018. a. The owner contributed $10,000 to the business and made no withdrawals. b. The owner made no contributions. The owner withdrew cash of $3,000. c. owner made contributions of $12,500 and withdrew cash...
Extract from the ledger of Casper Limited on 30 June 2020: R Capital: Bruce   400 000...
Extract from the ledger of Casper Limited on 30 June 2020: R Capital: Bruce   400 000 Capital: Lee 300 000 Current a/c: Bruce (01 July 2019) 45 000 CR Current a/c: Lee (01 July 2019) 42 000 DR Drawings: Bruce 95 000 Drawings: Lee 110 000 The following must be taken into account: 1. On 30 June 2020 the Profit and Loss account reflected a net profit of R940 000. 2. Partners are entitled to interest at 14% p.a. on...
Part B Bruce Manufacturing Ltd’s post-closing trial balance at 30 June 2019 included the following balances:...
Part B Bruce Manufacturing Ltd’s post-closing trial balance at 30 June 2019 included the following balances: Machinery Control (at cost) $244 480 Accumulated Depreciation – Machinery Control 113 800 Fixtures (at cost) 308 600 Accumulated Depreciation – Fixtures 134 138 The Machinery Control and Accumulated Depreciation – Machinery Control accounts are supported by subsidiary ledgers. Details of machines owned at 30 June 2019 are as follows: Machine Purchase Cost Estimated Estimated date useful Life residual value 1 28 Apr 2015...
The following is the ending balances of accounts at June 30, 2018 for Excell Company. Account...
The following is the ending balances of accounts at June 30, 2018 for Excell Company. Account Title Debits Credits Cash $ 121,000 Short-term investments 103,000 Accounts receivable 318,000 Prepaid expenses 70,000 Land 113,000 Buildings 358,000 Accumulated depreciation—buildings $ 179,000 Equipment 284,000 Accumulated depreciation—equipment 139,000 Accounts payable 192,000 Accrued expenses 64,000 Notes payable 138,000 Mortgage payable 320,000 Common stock 290,000 Retained earnings 45,000 Totals $ 1,367,000 $ 1,367,000 Additional information: The short-term investments account includes $37,000 in U.S. treasury bills purchased...
Spring Ltd's Financial records at 30 June 20X6 Assets Accounts Receivable 760 000 Allowance for doubtful...
Spring Ltd's Financial records at 30 June 20X6 Assets Accounts Receivable 760 000 Allowance for doubtful debts (6000) Interest receivable 34 000 Prepaid Insurance 15 000 Plant (at cost) 800 000 Accumulated Depreciation for plant (420 000) Liabilities Provision for long service leave 350 000 Additional information: The amount of accumulated deprecation of plant for tax purposes is $640 000 The tax rate is 30% per annum Required: Calculate Total Taxable Temporary difference for Spring Ltd measured at 30 June...
Mybank Ltd acquired some machinery at a cost of $2 000 000. As at 30 June...
Mybank Ltd acquired some machinery at a cost of $2 000 000. As at 30 June 2022 the machinery had accumulated depreciation of $400 000 and an expected remaining useful life of four years. On 30 June 2022 it was determined that the machinery could be sold at a price of $1 200 000 and that the costs associated with making the sale would be $50 000. Alternatively, the machinery is expected to be useful for another four years and...
The balances in the accounts of Maybe Ltd at 30 June 2019 and 30 June 2020...
The balances in the accounts of Maybe Ltd at 30 June 2019 and 30 June 2020 are: 30th June 2020 ‘000 30th June 2019 ‘000 Sales (all on credit) 300 420 Cost of Goods Sold 156 132 Doubtful Debts expense 30 36 Interest Expense 24 36 Salaries 36 30 Depreciation 12 18 Cash 172.80 166.80 Inventory 216 192 Accounts Receivable 324 300 Allowance for Doubtful Debts 36 42 Land 180 180 Plant 120 108 Accumulated Depreciation 24 36 Bank Overdraft...
The balances in the accounts of Maybe Ltd at 30 June 2019 and 30 June 2020...
The balances in the accounts of Maybe Ltd at 30 June 2019 and 30 June 2020 are: 2020 ‘000 2019 ‘000 Sales (all on credit) 300 420 Cost of Goods Sold 156 132 Doubtful Debts expense 30 36 Interest Expense 24 36 Salaries 36 30 Depreciation 12 18 Cash 172.80 166.80 Inventory 216 192 Accounts Receivable 324 300 Allowance for Doubtful Debts 36 42 Land 180 180 Plant 120 108 Accumulated Depreciation 24 36 Bank Overdraft 24 22.80 Accounts Payable...
The balances in the accounts of Maybe Ltd at 30 June 2019 and 30 June 2020...
The balances in the accounts of Maybe Ltd at 30 June 2019 and 30 June 2020 are: 30th JUNE 2020 ‘000 30th JUNE 2019 ‘000 Sales (all on credit) 300 420 Cost of Goods Sold 156 132 Doubtful Debts expense 30 36 Interest Expense 24 36 Salaries 36 30 Depreciation 12 18 Cash 172.80 166.80 Inventory 216 192 Accounts Receivable 324 300 Allowance for Doubtful Debts 36 42 Land 180 180 Plant 120 108 Accumulated Depreciation 24 36 Bank Overdraft...
Scenario 1 Financing Company Operations The equity of ChiHerbal Ltd as at 30 June 2018 comprises...
Scenario 1 Financing Company Operations The equity of ChiHerbal Ltd as at 30 June 2018 comprises the following: 320 000 ordinary Class 1 shares, issued at $4, fully paid $1 280 000 240 000 ordinary Class 2 shares, issued at $4, called to $2.40 576 000 40 000 6% redeemable preference shares, issued at $3.00, fully paid 120 000 Share issue costs (4 272) Calls in advance (at $1.60) 25 600    Share options (issued at $1.20, fully paid) 38...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT