Activity 1 Account Dr. Bank (1,200 x 0.8) Cr. Application and Allotment – Ordinary Shares To record the money received from the 1200 share applications Debit ($) Credit ($) 960 960 Dr. Application and Allotment – Ordinary Shares (1,000 x 1.2) 1,200 1,200 Cr. Share Capital To record the allotment of 1,000 shares Dr. Application and Allotment – Ordinary Shares (200 x 0.8) Cr. Bank 160 160 To record the refund to the unsuccessful applicants Activity 1 Prepare journal entries to record the issue of shares: ► Application to issue 1,000 ordinary share Issue price = $1.4 $0.8 payable on application ► $0.4 payable on allotment $0.2 payable when called ► Application were received for 1,200 shares
Activity 1 Account Dr. Bank (1,200 x 0.8) Cr. Application and Allotment – Ordinary Shares To record the money received from the 1200 share applications Debit ($) Credit ($) 960 960 Dr. Application and Allotment – Ordinary Shares (1,000 x 1.2) 1,200 1,200 Cr. Share Capital To record the allotment of 1,000 shares Dr. Application and Allotment – Ordinary Shares (200 x 0.8) Cr. Bank 160 160 To record the refund to the unsuccessful applicants Activity 1 Prepare journal entries to record the issue of shares: ► Application to issue 1,000 ordinary share Issue price = $1.4 $0.8 payable on application ► $0.4 payable on allotment $0.2 payable when called ► Application were received for 1,200 shares
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 3CE: Prepare general journal entries for the following transactions of GOTE Company: (a) Received...
Related questions
Question
What is the 1.2 in the second
"Dr. Application and Allotment – Ordinary Shares (1,000 x 1.2)"
What is the 1.2 comes from?
![Activity 1
Account
Dr. Bank (1,200 x 0.8)
Cr. Application and Allotment – Ordinary Shares
To record the money received from the 1200 share applications
Debit ($)
Credit ($)
960
960
Dr. Application and Allotment – Ordinary Shares (1,000 x 1.2)
1,200
1,200
Cr. Share Capital
To record the allotment of 1,000 shares
Dr. Application and Allotment – Ordinary Shares (200 x 0.8)
Cr. Bank
160
160
To record the refund to the unsuccessful applicants](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F405a47b2-48e8-4035-8b7a-a714b465a78b%2F8bf14f72-6e19-4c90-892f-ace52e39d1d6%2Fxgfhi7_processed.png&w=3840&q=75)
Transcribed Image Text:Activity 1
Account
Dr. Bank (1,200 x 0.8)
Cr. Application and Allotment – Ordinary Shares
To record the money received from the 1200 share applications
Debit ($)
Credit ($)
960
960
Dr. Application and Allotment – Ordinary Shares (1,000 x 1.2)
1,200
1,200
Cr. Share Capital
To record the allotment of 1,000 shares
Dr. Application and Allotment – Ordinary Shares (200 x 0.8)
Cr. Bank
160
160
To record the refund to the unsuccessful applicants
![Activity 1
Prepare journal entries to record the issue of shares:
► Application to issue 1,000 ordinary share
Issue price = $1.4
$0.8 payable on application
► $0.4 payable on allotment
$0.2 payable when called
► Application were received for 1,200 shares](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F405a47b2-48e8-4035-8b7a-a714b465a78b%2F8bf14f72-6e19-4c90-892f-ace52e39d1d6%2F1dowkn7_processed.png&w=3840&q=75)
Transcribed Image Text:Activity 1
Prepare journal entries to record the issue of shares:
► Application to issue 1,000 ordinary share
Issue price = $1.4
$0.8 payable on application
► $0.4 payable on allotment
$0.2 payable when called
► Application were received for 1,200 shares
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Accounting (Text Only)](https://www.bartleby.com/isbn_cover_images/9781285743615/9781285743615_smallCoverImage.gif)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Accounting (Text Only)](https://www.bartleby.com/isbn_cover_images/9781285743615/9781285743615_smallCoverImage.gif)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning