Prepare general journal entries, Financial Management

Assignment Help:

On 1 July 2006, Goela Ltd was registered and offered 1 000 000 ordinary shares to the public at an issue price of $1.70, payable as follows:

50c on application (due 31 August)

70c on allotment (due 30 September)

Balance on final call

The issue was underwritten at a commission of $5 000, with a maximum uptake of 200 000 shares. During the financial year the following events occurred:

?  By 31 August 2006, applications had been received for 1 000 000 ordinary shares of which applicants for 200 000 shares forwarded the full $1.70 per share, the remainder paying only the application money.

?  At a directors' meeting on 1 September 2006, as enough shares had been applied for, the full 1 000 000 shares were issued, with excess monies going to allotment and application.

?  By 30 September 2006 all outstanding monies has been received. Other share issue costs amounting to $7000 were also paid on 30 September 2006 along with the underwriter's commission.? 

As the company had done very well in its first six months, on the 3rd of January 2007 the directors declared and paid an interim dividend of 5cents per share.

?  The final call was made on 1 March 2007 with money due by 31 March 2007. All money was received on the due date except for the holder of 20 000 shares who failed to meet the final call. On 7 April 2007, as provided for in the constitution, the directors decided to forfeit these shares. They were reissued, on 15 April 2007, as paid to $1.70 for $1.50 cash. The balance of the Forfeited Shares account was returned to the former shareholder on 16 April 2007.

?  On the 30th of June 2007, the company directors declared a final dividend of 10c per share, in line with the company's constitution this does not need to be confirmed at the AGM by the shareholders of the company.

Required:

Prepare general journal entries to record the above data for Goela Ltd


Related Discussions:- Prepare general journal entries

APR and EAR, Assume a bank charges a 15.5% APR (annual percentage rate) on ...

Assume a bank charges a 15.5% APR (annual percentage rate) on credit card holder compounds quarterly. What EAR (effective annual rate) is the bank is charging? What if they change

Explain net present value method, Q. Explain Net Present Value Method? ...

Q. Explain Net Present Value Method? Net Present Value (NPV) Method: - This process measures the Present value of returns per rupee invested. In this method present value of

Effect on stock valuation, Effect on Stock Valuation Until the 1960s, c...

Effect on Stock Valuation Until the 1960s, common stocks were viewed as a good instrument against loss caused by inflation. Also, before 1960, stocks were not providing full he

State the cash flow from investing activities, Cash flow from investing act...

Cash flow from investing activities The items included in this heading are: Cash payments Cash receipts Acquiring proper

What is accelerated depreciation, Q. What is Accelerated Depreciation? ...

Q. What is Accelerated Depreciation? Accelerated Depreciation - Method which records greater DEPRECIATION than STRAIGHT-LINE DEPRECIATION in the early years and less depreciati

Discuss the pros and cons of financing in unhedged, You have the following ...

You have the following information about rates in London for Eurocurrency loans of one-year duration, the exchange rate between the USD and euros, the currency in which you want fi

Give subject matter of participation, Q. Give subject matter of participati...

Q. Give subject matter of participation? Subject matter of participation by and large the workers interests in participation varies with the nature of issues' involved in parti

Evaluation of change in credit policy, Evaluation of change in credit polic...

Evaluation of change in credit policy Current average collection period = 30 + 10 = 40 days Current accounts receivable = 6m × 40/ 365 = $657534 The Average collection pe

Define the risk of cost of capital, Risk of cost of capital A straight...

Risk of cost of capital A straightforward assumption of traditional cost of capital analysis is that firm's business and financial risk are unaffected by acceptance and financ

Sensex, What is Financial index & commodity index? Method of index uses in ...

What is Financial index & commodity index? Method of index uses in calculation? Weighted average method? How to calculate index?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd