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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:

option c it will have negative consequences..

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2 years ago
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 4% of credit sales will
OverLord2011 [107]

Answer:

$3760

Explanation:

Calculation to determine the December 31 balance in Bad Debt Expense

Using this formula

Bad debt expense = Credit sales × Uncollectible percentage

Let plug in the formula

Bad debt expense= $94,000 × 4%

Bad debt expense= $94,000 × 0.04

Bad debt expense= $3760

Therefore the December 31 balance in Bad Debt Expense will be $3760

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2 years ago
The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising budget of $2,000 between newspap
Art [367]

Answer:

Explanation is given below

Explanation:

Given that, the total budget for the media is only $1,000 per month.

For the allocation, each type of media would get at least 25% of the budget.

Hence, from the available information, we have the following:

Parameters:

$1000 = Monthly advertising budget

25%= Minimum spending for each type of media

50 = Value of the index for local newspaper advertising

80= Value of the index for spot radio advertising

Decision variables;

x1= Newspaper advertising budget

x2= Radio advertising budget

LP Model;

Maximize Z=50x1+ 80x2

Subject to:x1+ x2≤1000

x1≥ 250

x2≥ 250

x1,x2≥ 0

p.s. OptimumZ=72, 500,

x1=250,

x2=750

6 0
3 years ago
You are the marketing research director of a medium-sized manufacturing firm and you would like to engage an outside marketing r
satela [25.4K]

Answer:

The answer is D. Specialty-line marketing research firms.

Explanation:

7 0
2 years ago
Jacob Co. sells merchandise on credit to Isaiah Co. for $8,600. The invoice is dated on May 1 with terms of 1/15, net 45. What i
Kryger [21]

Answer:

The discount is for $86

It will be available until May 16th

Explanation:

the credit terms are 1/15, net 45

the first numebr is the discount amount, 1%

the second number is the days after billing this discount option is active, 15

net 45 means the customer can pay the nominal 8,600 within a 45 days period. After that it should renegociate the bill

The discount will be 8,600 x 1% = 8,600 x 0.01 = 86

It will be available up to 15 days after billing:

May 1st + 15 days = May 16th

4 0
2 years ago
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