Reference no: EM133187067

Questions -

Q1) Company makes final call of 25c per share on 500 000 shares issued at $1. Holders of 20 000 shares fail to pay the call and directors forfeit these shares.

Assume:

1. Shares were subsequently cancelled.

2. Shares were reissued for a payment of $1 per share

Required - Prepare the general journal entries to reflect these events.

Q2) A company declares and pays an interim dividend of $50 000 during the year and declares a final dividend of $50 000 at the end of the financial year

-Record declaration of interim dividend

-Record payment of interim dividend

-Record appropriation of profit for interim dividend at end of year

-Record declaration of final dividend

-Record appropriation of profit for final dividend

Q3) A company issued shareholders with a 1 for 5 bonus issue out of retained profits on its issued capital of 500 000 ordinary shares issued for $1.

Q4) A company issues a prospectus for the issue of 5000x $100, 10-year debentures, which is fully subscribed.