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Calculate the cash available for refund to the shareholders

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Reference no: EM132653211

Part AAs at 31st December 2019, Lautoka Ltd had issued 200,000 shares valued
at $4.00, called to $3.00. All application and allotment money was received in full. Lautoka Ltd had paid an underwriter $20 000 to assist in the initial public offering.

On 1st January 2020,the directors sent a notice to shareholders advising them to pay up the remaining amounts due on their shares.

By 15th February 2020, Al money due had been received expect for holders 15,000 shares who default. On 29th February 2020 the directors decided for forfeit those shard and spent $2500 to arrange their re-issue to new shareholders who paid $3.50 by 10 March 2020.The re issued shares were credited for their full value.

Required :

Question a. Calculate the value of share capital on 31 December 2019

Question b. Record Al journal entries from 1 January to 15 February 2020

Question C. Record all the journal entries for the forfeiture and re-issue of shares

Question D. Calculate the cash available for refund to the shareholders who default

Reference no: EM132653211

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