Reference no: EM132784291
Problem 1: Moonshine Company issued 30 000 share options to subscribe for ordinary shares. The exercise price on the options was $2 per share. If all options were exercised on the due date, the journal entry that would be recorded is:
Select one:
a. Cash Dr 60 000
Share capital - ordinary Cr 60 000
b. Share capital - ordinary Dr 60 000
Cash Cr 60 000
c. Share options - ordinary Dr 60 000
Share capital - ordinary Cr 60 000
d. Share options reserve Dr 60 000
Cash Cr 60 000
Problem 2: he Australian financial news quoted US$1.00 equals A$0.7836/0.8105. What does this represent?
Select one:
a. A bid rate of A$0.8105
b. A bid-ask spread of A$0.0269
c. The direct form of quotation
d. An offer rate of A$0.7836