During 2012 the following selected transactions affecting shareholders' equity occurred for Italy Company Ltd: Invited applications for 25 000 company shares. The shares were to be issued at $60 per share, payable $20 on application and $30 on allotment 1 Feb: and $10 on call By 25 February, applications for 26 000 shares had been received. Directors resolved to allot the shares, with excess application money to be 5 Mar: applied to allotment. 31 Allotment monies were received in full. Mar: 25 Directors make a call on shareholders for the remaining $10. Apr: 30 Calls are received from all shareholders Мay: Directors declare a dividend of $1 per share, to shareholders of record on 1 July: 1 August, payable on 1 September. Required: Give the journal entries for each of the transactions.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
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Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 8PA: Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000...
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During 2012 the following selected transactions affecting shareholders' equity
occurred for Italy Company Ltd:
Invited applications for 25 000 company shares. The shares were to be
issued at $60 per share, payable $20 on application and $30 on allotment
and $10 on call By 25 February, applications for 26 000 shares had been
received.
1 Feb:
Directors resolved to allot the shares, with excess application money to be
5 Mar:
applied to allotment.
31
Allotment monies were received in full.
Mar:
25
Directors make a call on shareholders for the remaining $10.
Apr:
30
Calls are received from all shareholders
May:
Directors declare a dividend of $1 per share, to shareholders of record on
1 July:
1 August, payable on 1 September.
Required:
Give the journal entries for each of the transactions.
Transcribed Image Text:During 2012 the following selected transactions affecting shareholders' equity occurred for Italy Company Ltd: Invited applications for 25 000 company shares. The shares were to be issued at $60 per share, payable $20 on application and $30 on allotment and $10 on call By 25 February, applications for 26 000 shares had been received. 1 Feb: Directors resolved to allot the shares, with excess application money to be 5 Mar: applied to allotment. 31 Allotment monies were received in full. Mar: 25 Directors make a call on shareholders for the remaining $10. Apr: 30 Calls are received from all shareholders May: Directors declare a dividend of $1 per share, to shareholders of record on 1 July: 1 August, payable on 1 September. Required: Give the journal entries for each of the transactions.
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