Reference no: EM131102456
Neon Ltd makes an offer of 1,000,000 ordinary shares to the public. In its prospectus it notes that the shares are to be issued at $1.50 per share. The shares are to be paid in instalments. The first payment, to be made on application is $0.80 and a second amount of $0.20 will be due on allotment. Remaining monies will be called at future dates to be determined.
Applications commence being received on 1 August 2011 and the closing date for applications is 31 August 2011. By the closing date, applications have been received for 1,500,000 shares. To deal with the oversubscription, Neon Ltd has decided to issue shares to all subscribers on a pro rata basis. Shares are allotted on 1 September 2011. All amounts due on allotment are paid by the due date.
A first call for $0.10 is made on 1 November 2011, with the amounts being due by 30 November 2011. A second and final call of $0.40 is made on 1 December 2011. Shareholders of 100,000 shares fail to pay the amount due on the call by the due date and on 31 December 2011 these shareholders have their shares forfeited.
On 1 March 2012 an interim dividend of $10,000 is declared by directors for the remaining shareholders. This dividend is paid on 31 March 2012.
Required:
a) Prepare the accounting journal entries necessary to account for the above transactions and events.
b) Describe the role of, and the interaction of the ASIC, the AASB and the ASX in the regulation of financial reporting in Australia. Include in your answer an outline the regulatory document each of these bodies produce.
Notes:-Topic 1Corporate Regulation & Reporting
Topic 2 Company Formation & Operations
Topic 3 Raising Company Funds
Topic 4 Reports and Disclosures
Topic 5 Business Combinations
Topic 6 Corporate Groups and Consolidation
Topic 7 Consolidation process
Topic 8 Intra-Group transactions
Topic 9 Direct Non-controlling Interest
Topic 10 Indirect Interest
Topic 11Cash Flow Consolidation
Topic 12 Introduction to External Administration
Attachment:- Notes_Topic_1_to_12.zip
|
Employment assignments require special compensation
: Do you agree or disagree that some international employment assignments require special compensation? Please explain. How does recruiting for international assignments differ from that of domestic assignments? How does the scope of a firm's internati..
|
|
Explain the use of letter of credit
: Explain the use of a Letter of Credit. Why do firms use counter trade? How does capital budgeting for international projects differ from that of domestic projects?
|
|
What are the sources of pressure that change
: What are the sources of pressure that change and influence the development of accounting principles and standards?
|
|
What is supply chain management
: How do production management and service management differ? What is supply chain management? Why is it important for organizations to control productivity?
|
|
Describe the role of and the interaction of the asic
: Neon Ltd makes an offer of 1,000,000 ordinary shares to the public. In its prospectus it notes that the shares are to be issued at $1.50 per share. The shares are to be paid in instalments. The first payment, to be made on application is $0.80 and a ..
|
|
What is meant by the term organizational culture
: What is the fundamental difference between a license and a franchise? What is meant by the term "organizational culture?" How might a firm using the "transnational strategy" adapt their organizational structure in order to save costs?
|
|
What are some possible reasons why another organization
: What are some possible reasons why another organization, such as the Governmental Accounting Standards Board, should not issue financial reporting standards?
|
|
Why did the gold standard collapse
: Examine the value of the US dollar verses the euro during the past two years. Why do you think the value of the US dollar has fluctuated? Why did the "gold standard" collapse. What do you think might happen if the IMF loosens its tight monetary polic..
|
|
What conditions does the equation give satisfactory predicti
: The following equation can, under certain assumptions, be used to forecast financial requirements: Under what conditions does the equation give satisfactory predictions, and when should it not be used?
|