Attached detailsPrepare Ledger and T account Lincoln Ltd was registered as a public company on January 2, 2020. Directors immediatelyissued a prospectus inviting the public to subscribe for 2,000,000 million shares at $2 each,payable $1 on application, $0.50 on allotment and the remainder in two calls of $0.25 each.The closing date for applications was April 30 and the directors allotted shares on May 1.Applications were received for 2,500,000 shares and allotments were made on a pro-rata basisto applicants as follows:# Shares appliedforShares AllottedAmount paid pershareTotal AmountReceived1,200,000500,000800,0002.500,0001,000,000400,000600,0002,000,0001,200,000750,0001,600,0001.001.502.003,550,000Directors have exercised their right to retain excess application money and apply it againstallotment and future calls when due. Refunds were made as necessary on May 1.Other relevant dates are:• May 31• July 1• July 31• Sept 1Outstanding allotment money received in full.Call #1 is madeOutstanding call money received in fullCall #2 is madeSept 30All call money received except from holders of 16,500 shares

When company invites application for shares, the company may receives application money for more…

Lincoln Ltd was registered as a public company on January 2, 2020. Directors immediately issued a prospectus inviting the public to subscribe for 2,000,000 million shares at $2 each, payable $1 on application, $0.50 on allotment and the remainder in two calls of $0.25 each. The closing date for applications was April 30 and the directors allotted shares on May 1. Applications were received for 2,500,000 shares and allotments were made on a pro-rata basis to applicants as follows: Shares Allotted # Shares applied for Amount paid per share Total Amount Received 1.00 1,200,000 500,000 800,000 2,500,000 1,000,000 400,000 600,000 2,000.000 1,200,000 750,000 1,600,000 3,550,000 1.50 2.00 Directors have exercised their right to retain excess application money and apply it against allotment and future calls when due. Refunds were made as necessary on May 1. Other relevant dates are: • May 31 Outstanding allotment money received in full. • July 1 • July 31 • Sept 1 Call #1 is made Outstanding call money received in full Call #2 is made • Sept 30 All call money received except from holders of 16,500 shares

Lincoln Ltd was registered as a public company on January 2, 2020. Directors immediately issued a prospectus inviting the public to subscribe for 2,000,000 million shares at $2 each, payable $1 on application, $0.50 on allotment and the remainder in two calls of $0.25 each. The closing date for applications was April 30 and the directors allotted shares on May 1. Applications were received for 2,500,000 shares and allotments were made on a pro-rata basis to applicants as follows: Shares Allotted # Shares applied for Amount paid per share Total Amount Received 1.00 1,200,000 500,000 800,000 2,500,000 1,000,000 400,000 600,000 2,000.000 1,200,000 750,000 1,600,000 3,550,000 1.50 2.00 Directors have exercised their right to retain excess application money and apply it against allotment and future calls when due. Refunds were made as necessary on May 1. Other relevant dates are: • May 31 Outstanding allotment money received in full. • July 1 • July 31 • Sept 1 Call #1 is made Outstanding call money received in full Call #2 is made • Sept 30 All call money received except from holders of 16,500 shares

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

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 10MC

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