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Provide the accounting entries to record the issue

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On 1 July 2018, Mick Ltd invited Fanning Ltd to purchase 1 million shares at $3.00 per share. At the time of accepting the offer, Fanning Ltd-which is an insurance company-had cash resources available of only $2 600 000. The balance of the purchase price would be made up of insurance to be provided by Fanning Ltd to Mick Ltd.

By 30 June 2019, Fanning Ltd had supplied $280 000 worth of insurance to Mick Ltd.

REQUIRED

Problem 1: Provide the accounting entries to record the issue of the Mick Ltd shares.

Reference no: EM132622381

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