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Question - LMS Ltd was incorporated on 1 January 2020. The following transactions and events occurred since incorporation: 1 Feb 2020 LMS Ltd makes an offer to the public for investors to subscribe for 2,000,000 shares, at an issue price of $4.00 per share, with $2.50 payable on application and $1.50 payable on allotment. 28 Feb 2020 Applications close, with applications received for 2,200,000 shares 10 Mar 2020 Shares are allotted to applicants on a pro-rata basis, and any excess application money is transferred to allotment.
Required - Prepare the journal entries to record the transactions of LMS Ltd on 10 March 2020. Narrations are not required.
Accrued taxes and expenses payable 24,500. Compute the Return on common stock equity and Return on common stock equity
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