ABC Ltd was registered as a corporation on 1 July 2012. On 4 July 2012, ABC Ltd issued a prospectus offering 100 000 ordinary shares at an issue price of $2.50 each, payable $1.50 on application and $1.00 on allotment. Application closed on 1 August 2012 with the company having received applications for 110 000 shares. The shares were allotted on 15 August 2012, with the over-subscription amount being refunded to unsuccessful applicants. All allotment monies were received by 31 August 2012. Following the allotment, the balance in the Share Capital account would be: Select one: a. $100 000 Credit b. $250 000 Credit c. $100 000 Debit d. $250 000 Debit
ABC Ltd was registered as a corporation on 1 July 2012. On 4 July 2012, ABC Ltd issued a prospectus offering 100 000 ordinary shares at an issue price of $2.50 each, payable $1.50 on application and $1.00 on allotment. Application closed on 1 August 2012 with the company having received applications for 110 000 shares. The shares were allotted on 15 August 2012, with the over-subscription amount being refunded to unsuccessful applicants. All allotment monies were received by 31 August 2012. Following the allotment, the balance in the Share Capital account would be: Select one: a. $100 000 Credit b. $250 000 Credit c. $100 000 Debit d. $250 000 Debit
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 6PA: EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of...
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ABC Ltd was registered as a corporation on 1 July 2012. On 4 July 2012, ABC Ltd issued a prospectus offering 100 000 ordinary shares at an issue price of $2.50 each, payable $1.50 on application and $1.00 on allotment.
Application closed on 1 August 2012 with the company having received applications for 110 000 shares. The shares were allotted on 15 August 2012, with the over-subscription amount being refunded to unsuccessful applicants. All allotment monies were received by 31 August 2012.
Following the allotment, the balance in the Share Capital account would be:
Select one:
a.
$100 000 Credit
b.
$250 000 Credit
c.
$100 000 Debit
d.
$250 000 Debit
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