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VashaNatasha [74]
3 years ago
5

Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The terms of the iss

ue are that $1.00 is to be paid on application and the remaining $1.00 within one month of allotment.
Applications are received for 36 million shares during July 2019. The directors allot 30 million shares on 15 August 2019. The shares were allotted on a first-come, first-serve basis. The directors refunded the application money for 6 million shares on 15 August 2019. The amounts payable on the allotment are due by 20 September 2019.
By 20 September 2019, the holders of 5 million shares have failed to pay the amounts due on allotment. The directors forfeit the shares on 30 September 2019. The shares are resold on 15 October 2019 as fully paid. An amount of $1.90 per share is received. The remaining balance of forfeited shares were refunded on 20 October 2019.
Provide the journal entries necessary to account for the above transactions and events.
Business
1 answer:
Ronch [10]3 years ago
4 0

Answer and Explanation:

The journal entries are shown below:

1. Bank Dr $36,000,000 (36 million × $1)

       To Share application $36,000,000

(Being the application received)

2. Share application $36,000,000

               To Share capital $30,000,000

               To bank $6,000,000

(Being the allotment is recorded)

3. Share allotment $30,000,000

       To SHare capital $30,000,000

4. Bank Dr $25,000,000

        To Share allotment $25,000,000

(being allotment is recorded)

5. Share capital $10,000,000

             To SHare forfeited $5,000,000

             To Share allotment $5,000,000

(Being share forfetied is recorded)

6. Bank Dr $9,500,000

   Share forfeited Dr $500,000

          To Share capital $10,000,000

(Being share forfeited is recorded)

7. Share forfeited Dr $4,500,000

      To Bank $4,500,000

(Beng  share forfeited is recorded)

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Answer:

2.5

Explanation:

P1=$200

P2=$300

S1=100000

S2=300000

The percentage change in price is:

\Delta P =\frac{300-200}{\frac{200+300}{2}}=0.4=40\%

The percentage change in supply is:

\Delta S =\frac{300000-100000}{\frac{100000+300000}{2}}=1=100\%

The price elasticity of supply is given by:

E=\frac{\Delta S}{\Delta P}=\frac{100\%}{40\%}=2.5

The price elasticity of supply is 2.5.

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In exchange for a share of the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks
evablogger [386]

Answer:

The correct answer is option D.

Explanation:

The price of a 12 ounce can of CheapFizz is 75 cents.

After a deal with State U, CheapFizz gets exclusive rights to sell soft drink on the campus.

This makes CheapFizz a monopoly firm.

A monopoly firm is a price maker and produces at the point where the marginal cost is equal to marginal revenue. At this point the output level is lower than socially optimal and the price level is higher than socially optimal.

This means that the price of CheapFizz cans will be more than 75 cents after the deal.

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Answer: Option E

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