Question 3 Week 4Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. Theterms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month ofallotment.Applications are received for 36 million shares during July 2019. The directors allot 30 million shares on 15August 2019. The shares were allotted on a first-come, first-serve basis. The directors refunded the applicationmoney for 6 million shares on 15 August 2019. The amounts payable on the allotment are due by 20 September2019.By 20 September 2019, the holders of 5 million shares have failed to pay the amounts due on allotment. Thedirectors forfeit the shares on 30 September 2019. The shares are resold on 15 October 2019 as fully paid. Anamount of $1.90 per share is received. The remaining balance of forfeited shares were refunded on 20 October2019.RequiredProvide the journal entries necessary to account for the above transactions and events.Question 4 Week 10 (a) Where the parent company does not hold 100 percent equity of the subsidiary company, what portion of theintra-group transactions between the parent entity and the subsidiary entity will need to be eliminated onconsolidation? (b) What is a non-controlling interest, and how should it be disclosed? (c) How are non-controlling interests affected by intra-group transactions?(d) What are the three steps we use to calculate total non-controlling interest?
Question 3 Week 4
Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The
terms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month of
allotment.
Applications are received for 36 million shares during July 2019. The directors allot 30 million shares on 15
August 2019. The shares were allotted on a first-come, first-serve basis. The directors refunded the application
money for 6 million shares on 15 August 2019. The amounts payable on the allotment are due by 20 September
2019.
By 20 September 2019, the holders of 5 million shares have failed to pay the amounts due on allotment. The
directors forfeit the shares on 30 September 2019. The shares are resold on 15 October 2019 as fully paid. An
amount of $1.90 per share is received. The remaining balance of forfeited shares were refunded on 20 October
2019.
Required
Provide the journal entries necessary to account for the above transactions and events.
Question 4 Week 10
(a) Where the parent company does not hold 100 percent equity of the subsidiary company, what portion of the
intra-group transactions between the parent entity and the subsidiary entity will need to be eliminated on
consolidation?
(b) What is a non-controlling interest, and how should it be disclosed?
(c) How are non-controlling interests affected by intra-group transactions?
(d) What are the three steps we use to calculate total non-controlling interest?
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