Reference no: EM133152074
Question - On 30 June 2020, the equity accounts of Punter Ltd consisted of:
Share capital 190,000 ordinary shares, issued at $2 each, fully paid $380,000
General reserve 30,000
Retained earnings 75,000
The following transactions and events occurred during the year ended 30 June 2021:
On 1 October 2020, the directors issued a prospectus offering 40,000 ordinary shares at an issue price of $2.90, payable $2 on application and $0.90 at a future call. The closing date for application was 31 October 2020. The share issue was underwritten by Support Stockbrokers for a fee of $5,500, payable on 15 November 2020.
By 31 October 2020, applications for 50,000 shares had been received.
On 5 November 2020, the directors allotted the shares on a pro-rata basis, with applicants receiving 40,000 (80%) of their requested shares.
On 9 November 2020, the company returned the money to unsuccessful applicants.
On 15 November 2020, the underwriting fee was paid.
On 16 November 2020, the company announced a call for $0.90 payable on 30 November 2020.
On 30 November 2020, call payments received from all shareholders.
On 31 December 2020, the directors announced an interim dividend of 3c per share payable in cash on 1 February 2021.
On 1 February 2021, dividend declared on 31 December 2020 was paid.
To raise funds for expansion, the directors sold a parcel of 90,000 ordinary shares to KPI Capital Ltd on 28 April 2021 at an issue price of $4.90 per share through private placement.
Required - Prepare general journal entries to record the above transactions.
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