What correct journal entry to record the amount due

Assignment Help Accounting Basics
Reference no: EM132774739

Problem 1: Lotus Company Ltd decided to issue 100 000 ordinary shares for $3.00 each, payable in instalments, 50c on application, $1.50 on allotment and the balance payable at the discretion of the company. Applications were received for 120 000 shares. The shares were allotted by the directors a week after the close of applications and refunds were made for 20 000 shares. Twelve months after the allotment monies had been received the directors made a call for the remaining $1 per share. The correct journal entry to record the amount due to the company for the call instalment is:

Select one:

a. DR Call $100 000; CR Share capital $100 000
b. No accounting entry is required
c. DR Call $120 000; CR Share capital $120 000
d. DR Share capital $100 000; CR Call $100 000

Reference no: EM132774739

Questions Cloud

Advise qp pty ltd of the fringe benefits tax payable : Sam accepts an offer of employment, Advise QP Pty Ltd of the fringe benefits tax payable (rounded to the nearest dollar) for the FBT year ended 31 March 2020.
Prepare journal entry at the end of the first year to record : Waterway Limited has been experiencing increased customer demand. Prepare the journal entry at the end of the first year to record the payment and interest
Calculate the net capital gain to be included in mary : On 1 July 2019 Mary acquired a leather sofa for $28632. Calculate the Net Capital Gain, if any, to be included in Mary's assessable income for that income year
What would be the current price of the share : Knight Ltd's current dividend is $2.00 per share. Knight is expected go through a rapid growth stage and the annual dividends are expected to grow at 15% a year
What correct journal entry to record the amount due : Directors made a call for the remaining $1 per share. The correct journal entry to record the amount due to the company for the call instalment is
How many years will it take her to pay back : If she borrows the funds from Bendigo Bank and pay $525 per month how many years will it take her to pay back the loan? (Show answer correct to two decimal plac
Which is not a reason for declaring a share dividend : Which is not a reason for declaring a share dividend? To conserve the company's cash instead of declaring a cash dividend. / To give shareholders extra shares.
Calculate the net present value of the project : Paladin Ltd requires 11% pa required rate of return and has a required payback period of 2 years. Paladin is considering a new project that will cost $60,000
Which accountants do not recognise internally generated : Which Accountants do not recognise internally generated goodwill because? Which a capitalisation ratio of 2:1 compared to 2.5:1 means

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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