ABC Company Ltd. was registered with an authorized capital of Rs 10,000,000 divided into 100,000 ordinary shares of Rs. 100 each. Following is the balance sheet of ABC Company Ltd. for the year ended December 31st, 2018: ABC COMPANY LTD BALANCE SHEET (RS) For the Year Ended December 31st, 2018 ASSETS (RS.) DEBT + EQUITY (RS.) Current Assets Current Debt Cash 350,000 Accounts Payable 125,000 Accounts Receivable 245,000 Interest Payable 42,000 Inventory 47,000 Office Rent Payable 145,000 Office Supplies 5,000 Total Current Debt 312,000 Total Current Assets 647,000 Long Term Debt Fixed Assets 10% Bonds Payable 550,000 Office Equipment 700,000 Total Debt 862,000 Accumulated Depreciation (office equip.) (150,000) Book Value 550,000 Equity Office Furniture 550,000 Ordinary Shares Capital 500,000 Accumulated Dep. (office fur.) (100,000) Ordinary Shares Premium 50,000 Book Value 450,000 Retain Earnings 235,000 Total Fixed Assets 1,000,000 Total Equity 785,000 TOTAL ASSETS 1,647,000 TOTAL DEBT + EQUITY 1,647,000 Part - 1 General Journal – General Ledger and Trial Balance Following transactions were completed during the year 2019: Business offered 6,500 applications to general public for subscription at Rs. 110 for each shares through newspaper. The company’s banker reported that 8,000 shares money were received with application. The directors of the company finalized allotment of 6,500 shares and directed their banker to refund the excess application money. The company also paid cash in advance Rs. 105,000 to an advertising company. Purchased office supplies at cash Rs. 15,000. Purchased inventory on credit for Rs. 825,000 and also paid transportation charges Rs. 30,000. Purchased office equipment at cash from supplier for Rs. 500,000 Paid salaries to staff Rs. 75,000. Sold inventory for Rs. 1,500,000 including 15% cash sales. Business allowed 3% cash discount. Paid cash to supplier Rs. 360,000 Paid utility bills and office rent Rs 32,000 and Rs. 41,000 respectively. Defective inventory returned to supplier worth Rs. 22,000. 1% commission was paid to agency at all credit sales. Collected cash from customers Rs. 675,000 Auditor’s fees paid Rs. 30,000 Paid interest and rent by Rs. 42,000 and 145,000 respectively. REQUIRED Record the above transactions in General Journal (1 to 14), balance-off all the accounts (General Ledger - Hint: First post opening balances of all accounts shown in balance sheet for the period ended December 31st, 2018), and then extract a Trial Balance as at December 31st, 2019. What are characteristics of public limited companies and describe in detail the steps of incorporation of a public limited company.

ABC Company Ltd. was registered with an authorized capital of Rs 10,000,000 divided into 100,000 ordinary shares of Rs. 100 each. Following is the balance sheet of ABC Company Ltd. for the year ended December 31st, 2018: ABC COMPANY LTD BALANCE SHEET (RS) For the Year Ended December 31st, 2018 ASSETS (RS.) DEBT + EQUITY (RS.) Current Assets Current Debt Cash 350,000 Accounts Payable 125,000 Accounts Receivable 245,000 Interest Payable 42,000 Inventory 47,000 Office Rent Payable 145,000 Office Supplies 5,000 Total Current Debt 312,000 Total Current Assets 647,000 Long Term Debt Fixed Assets 10% Bonds Payable 550,000 Office Equipment 700,000 Total Debt 862,000 Accumulated Depreciation (office equip.) (150,000) Book Value 550,000 Equity Office Furniture 550,000 Ordinary Shares Capital 500,000 Accumulated Dep. (office fur.) (100,000) Ordinary Shares Premium 50,000 Book Value 450,000 Retain Earnings 235,000 Total Fixed Assets 1,000,000 Total Equity 785,000 TOTAL ASSETS 1,647,000 TOTAL DEBT + EQUITY 1,647,000 Part - 1 General Journal – General Ledger and Trial Balance Following transactions were completed during the year 2019: Business offered 6,500 applications to general public for subscription at Rs. 110 for each shares through newspaper. The company’s banker reported that 8,000 shares money were received with application. The directors of the company finalized allotment of 6,500 shares and directed their banker to refund the excess application money. The company also paid cash in advance Rs. 105,000 to an advertising company. Purchased office supplies at cash Rs. 15,000. Purchased inventory on credit for Rs. 825,000 and also paid transportation charges Rs. 30,000. Purchased office equipment at cash from supplier for Rs. 500,000 Paid salaries to staff Rs. 75,000. Sold inventory for Rs. 1,500,000 including 15% cash sales. Business allowed 3% cash discount. Paid cash to supplier Rs. 360,000 Paid utility bills and office rent Rs 32,000 and Rs. 41,000 respectively. Defective inventory returned to supplier worth Rs. 22,000. 1% commission was paid to agency at all credit sales. Collected cash from customers Rs. 675,000 Auditor’s fees paid Rs. 30,000 Paid interest and rent by Rs. 42,000 and 145,000 respectively. REQUIRED Record the above transactions in General Journal (1 to 14), balance-off all the accounts (General Ledger - Hint: First post opening balances of all accounts shown in balance sheet for the period ended December 31st, 2018), and then extract a Trial Balance as at December 31st, 2019. What are characteristics of public limited companies and describe in detail the steps of incorporation of a public limited company.

Intermediate Accounting: Reporting And Analysis

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ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

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Problem 3P: On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a...

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Question

ABC Company Ltd. was registered with an authorized capital of Rs 10,000,000 divided into 100,000 ordinary shares of Rs. 100 each. Following is the balance sheet of ABC Company Ltd. for the year ended December 31^st, 2018:

ABC COMPANY LTD
BALANCE SHEET (RS)
For the Year Ended December 31^st, 2018
ASSETS (RS.)	DEBT + EQUITY (RS.)
Current Assets	Current Debt
Cash	350,000		Accounts Payable	125,000
Accounts Receivable	245,000		Interest Payable	42,000
Inventory	47,000		Office Rent Payable	145,000
Office Supplies	5,000		Total Current Debt	312,000
Total Current Assets		647,000
			Long Term Debt
Fixed Assets			10% Bonds Payable	550,000
Office Equipment	700,000		Total Debt		862,000
Accumulated Depreciation (office equip.)	(150,000)
Book Value	550,000		Equity
Office Furniture	550,000		Ordinary Shares Capital	500,000
Accumulated Dep. (office fur.)	(100,000)		Ordinary Shares Premium	50,000
Book Value	450,000		Retain Earnings	235,000
Total Fixed Assets		1,000,000	Total Equity		785,000

TOTAL ASSETS		1,647,000	TOTAL DEBT + EQUITY		1,647,000

Part - 1

General Journal – General Ledger and Trial Balance

Following transactions were completed during the year 2019:

Business offered 6,500 applications to general public for subscription at Rs. 110 for each shares through newspaper. The company’s banker reported that 8,000 shares money were received with application. The directors of the company finalized allotment of 6,500 shares and directed their banker to refund the excess application money.
The company also paid cash in advance Rs. 105,000 to an advertising company.
Purchased office supplies at cash Rs. 15,000.
Purchased inventory on credit for Rs. 825,000 and also paid transportation charges Rs. 30,000.
Purchased office equipment at cash from supplier for Rs. 500,000
Paid salaries to staff Rs. 75,000.
Sold inventory for Rs. 1,500,000 including 15% cash sales. Business allowed 3% cash discount.
Paid cash to supplier Rs. 360,000
Paid utility bills and office rent Rs 32,000 and Rs. 41,000 respectively.
Defective inventory returned to supplier worth Rs. 22,000.
1% commission was paid to agency at all credit sales.
Collected cash from customers Rs. 675,000
Auditor’s fees paid Rs. 30,000
Paid interest and rent by Rs. 42,000 and 145,000 respectively.

REQUIRED

Record the above transactions in General Journal (1 to 14), balance-off all the accounts (General Ledger - Hint: First post opening balances of all accounts shown in balance sheet for the period ended December 31^st, 2018), and then extract a Trial Balance as at December 31^st, 2019.
What are characteristics of public limited companies and describe in detail the steps of incorporation of a public limited company.

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