Prepare journal entries to record the transactions

Assignment Help Accounting Basics
Reference no: EM13513250

Desco Ltd issued 100,000 ordinary shares of N1.00 each at N1.40 per share payable as follows:

(i) 35 kobo on application

(ii) 65 kobo on allotment (including premium)

(iii) 40 kobo on first call.

All the monies were received on due dates except for 10,000 shares not paid on first call. The holders of 10,000 shares failed to pay up and after some reminders, the shares were forfeited. The shares were re-issued at 75 kobo per share and all the monies were received.

Required:

(a) Prepare Journal entries to record the above transactions.

(b) State the purposes for which the share premium account may be applied.

Reference no: EM13513250

Questions Cloud

Determine the cost of goods sold during the period : Determine the cost of goods sold during the period under a periodic inventory system using (a) the FIFO method, (b) the LIFO method, and (c) the average-cost method.
Estimate the acceleration of the hanging mass : A 240g air track glider is connected to a string hanging over a frictionless pulley. find the acceleration of the hanging mass
Discuss how this information affects the reported cost : Discuss how this information affects the reported cost of inventory.
Define nitroglycerin decomposes rapidly upon ignition : The explosive nitroglycerin decomposes rapidly upon ignition or sudden impact according to the following balanced equation: 4C3H5N3O9 (l) --> 12 CO2 (g) + 10H2O (g) + 6N2 (g) + O2 (g)
Prepare journal entries to record the transactions : Prepare Journal entries to record the transactions and state the purposes for which the share premium account may be applied.
How much is the stand compressed by the statue : A 3440 kg statue is supported by a glass stand. The cross-section of the stand is square, 0.15 m to a side. Before the statue was placed on the stand, How much is the stand compressed by the statue
How many women-children were working with the constructor : A contractor had employed 100 labourers for a flyover construction task. He did not allow any woman to work without her husband. Also, atleast half the men working came with their wives. He paid five rupees per day to each man, four ruppes to each wo..
What is the angular frequency of the motion : A person goes up and down in simple harmonic motion while standing on a trampoline. The amplitude is 0.125 m and it takes 1.3 s to complete one oscillation. What is the angular frequency of the motion
Discuss four methods of valuing stock : Discuss FOUR methods of valuing stock and distinguish between „Cost? and „Net realizable value?.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Rationale for recognizing costs as expenses

Explain the rationale for recognizing costs as expenses at the time of product sale.

  The primary difference between the eva and economic profit

the primary difference between the eva and economic profit measures is the increased focus on cash flow by eva. for

  Effect of a change in accounting principle

The effect of a change in accounting principle that is inseparable from the effect of a change in accounting estimate should be reported:

  When brett reported net income of 780000 what was the

rojas co. owned 7000 shares 70 of the outstanding 10 100 par preferred stock and 60 of the outstanding common stock of

  Which statement is true regarding accounting and time frames

Which statement is true regarding accounting and time frames?

  Zenon chemical inc processes pine rosin into three products

zenon chemical inc. processes pine rosin into three products turpentine paint thinner and spot remover. during may the

  Microsoft corporation reports its investments

microsoft corporation reports its investments available-for-sale at the fair value of the investment securities. the

  Estimated collectable value of accounts

What was the estimated collectable value of accounts recivable as at 30 June 2009? What was the amount of the bad debts expense for the year ended 30 June 2009?

  Hghest and lowest opportunity cost

Which countries would you predict have the highest and lowest opportunity cost associated with a strong military?

  Difference in taxable income and cash inflow

Calculate the difference in taxable income and cash inflow under each method. Assume MACRS allowances are 20, 32, 18, 15, and 15 percent for years 1-5 respectively.

  Objective questions matching right answer

The pricing objective of maximizing profits: has not been affected by other, more socially focused concerns .

  Gain-loss recognizing the exchange

What gain or loss is recognized by the corporation when it issues its shares to John? What is the basis to the corporation of the property it received from John?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd