Homework Help is Here – Start Your Trial Now!
Business
Accounting
June 2022, the directors of BHU Limited announced that the company is ready to receive cations. BHU Ltd decided to issue 10 million shares at $8 per share and $3 per share on alance on call. On 1 June 2022, investors paid for 10 million shares. On 20 June 2022, th pted applications for 10 million shares and made the call for the first call. On 30 June 2021 on shares who paid for the application failed to pay the call money and, as a result, the sha ited. On the same day, the holders of 8 million shares paid the call money. On 10 March 20 es were reissued and sold immediately in the market for $7 for each share. The cost of reis

June 2022, the directors of BHU Limited announced that the company is ready to receive cations. BHU Ltd decided to issue 10 million shares at $8 per share and $3 per share on alance on call. On 1 June 2022, investors paid for 10 million shares. On 20 June 2022, th pted applications for 10 million shares and made the call for the first call. On 30 June 2021 on shares who paid for the application failed to pay the call money and, as a result, the sha ited. On the same day, the holders of 8 million shares paid the call money. On 10 March 20 es were reissued and sold immediately in the market for $7 for each share. The cost of reis

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...
See similar textbooks
icon
Related questions
Question
Give me answer within an hour I will give you positive rating immediately....
Question 2 On 1 June 2022, the directors of BHU Limited announced that the company is ready to receive share applications. BHU Ltd decided to issue 10 million shares at $8 per share and $3 per share on application and the balance on call. On 1 June 2022, investors paid for 10 million shares. On 20 June 2022, the company accepted applications for 10 million shares and made the call for the first call. On 30 June 2021, holders of 2 million shares who paid for the application failed to pay the call money and, as a result, the shares were forfeited. On the same day, the holders of 8 million shares paid the call money. On 10 March 2022, the forfeited shares were reissued and sold immediately in the market for $7 for each share. The cost of reissuing the shares was $50 000. On 15 March 2022, the balance of selling the issued share is paid to holders of forfeited shares. Required Prepare all journal entries necessary to account for the issue of the shares. In your answer narratives for journal entries are not necessary but you must include the date for each journal entry.
Transcribed Image Text:Question 2 On 1 June 2022, the directors of BHU Limited announced that the company is ready to receive share applications. BHU Ltd decided to issue 10 million shares at $8 per share and $3 per share on application and the balance on call. On 1 June 2022, investors paid for 10 million shares. On 20 June 2022, the company accepted applications for 10 million shares and made the call for the first call. On 30 June 2021, holders of 2 million shares who paid for the application failed to pay the call money and, as a result, the shares were forfeited. On the same day, the holders of 8 million shares paid the call money. On 10 March 2022, the forfeited shares were reissued and sold immediately in the market for $7 for each share. The cost of reissuing the shares was $50 000. On 15 March 2022, the balance of selling the issued share is paid to holders of forfeited shares. Required Prepare all journal entries necessary to account for the issue of the shares. In your answer narratives for journal entries are not necessary but you must include the date for each journal entry.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Applying For Credit
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
EBK CFIN
EBK CFIN
Finance
ISBN:
9781337671743
Author:
BESLEY
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Entrepreneurial Finance
Entrepreneurial Finance
Finance
ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage
SEE MORE TEXTBOOKS