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The following events occurred in the newly formed company, Armidale Ltd, which was registered on 31...

The following events occurred in the newly formed company, Armidale Ltd, which was registered on 31 January 2019.

2019 Feb 1 Armidale Ltd issued a prospectus calling for applications for 600000 ordinary shares to be issued at a price of $3, payable $2 on the application, $ 50c on an allotment and the balance as and when required.

Mar. 1 Applications closed with the issue oversubscribed by $1800000. The directors allotted shares on the basis of 1 share for every 3 applied for. Excess application money was applied against amounts owing on allotment and the balance was refunded.

sept. 20 A final call on shares was made.

Oct. 20 Call money was received.

Nov. 1 Shareholders were offered a 1-for-5 rights issue at a price of $2.80, with rights to be exercised by 15 December. If rights are not exercised, they will lapse.

Dec. 15 Holders of 560000 shares exercised their rights to take up new shares in accordance with the rights issue by paying in the appropriate money to the company.

Required:

Prepare journal entries and

Ledger (T accounts) to record the events in the records of Armidale Ltd for 2016.

Expert Solution

Assumption: Face value of Shares is $3 per share.

ekkarill92 answered 1 year ago

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