Harris Corporation Decided To Invite Application For Its First Issue Of 100 000 Units Of 10 Preference Shares Rm 1 00 E 1 (46.45 KiB) Viewed 29 times
Harris Corporation Decided To Invite Application For Its First Issue Of 100 000 Units Of 10 Preference Shares Rm 1 00 E 2 (37.29 KiB) Viewed 29 times
Harris Corporation decided to invite application for its first issue of 100,000 units of 10% preference shares RM 1.00 each payable in full on application and 200,000 units of ordinary shares payable by instalment as follows: On application On allotment On 1st call On 2nd call RM0.20 RM0.40 RM0.30 RM0.30 Applications were received for 300,000 units of ordinary shares. The directors rejected applications for 50,000 units of ordinary shares and allotted the ordinary shares on pro rata basis among the remaining applicants. Any surplus monies on application were used to pay up on allotment All monies due on allotment as well as on calls in relation to ordinary shares were duly received when due All preference shares were fully subscribed and paid for. There was no over or under subscription of preference shares. Required: (a) Prepare journal entries to record the above transactions (without narrations) (b) Prepare an extracted statement of financial position of the company after the completion of all of the above transactions.
(a) Briefly explain TWO (2) methods of payment for the issuance of share. (b) MOLLY Berhad decided to issue 1,000,000 units of ordinary shares. The terms of payment were as follows: On application RMO.70 On allotment 1.00 On 1" call 0.60 On 2nd call 0.40 Applications were received for 1,250,000 units of ordinary shares and the directors resolved to refund applications for 250,000 units of ordinary shares and give full allotment for 1,000,000 units of ordinary shares. All monies were duly collected when due, except for one shareholder who held 10,000 units of shares who also paid the 2nd call money together with the 1st call money Required: Prepare journal entries for the above transactions. (c) Based on Question 1(b), prepare an extracted statement of financial position for MOLLY Berhad.
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