Ask Question, Ask an Expert


Ask Financial Accounting Expert

problem1. The following given information is available from a corporation:
                                           2003          2004                                    2003         2004
Share capital                        70,000         74,000              Cash           9,000          7,800
Debentures                          12,000         6,000                Debtors      14,900         17,700
Reserve for doubtful debts       700           800                   Stock          49,200         42,700
Trade creditors                    10,360        11,840                Land           20,000         30,000
P/L a/c                              10,040        10,560               Goodwill        10,000          5,000

                                       103,100       103,200                                       103,100


Extra information:

i) Dividend paid totalled to cash. 3,500.

ii) Land was purchased for cash. 10,000.

iii) An amount provided for amortisation of goodwill was cash 5, 000.

iv) Debentures paid off amounted to cash. 6,000.

Required; make cash flow statement from the above.

problem2. A company has an authorized share capital of 250 million divided in 1,500,000 ordinary shares of sh.100 each and 1,000,000preference shares of sh.100 each. 1,000,000 ordinary shares were offered for subscription at sh.150 each payable as shown below: on application sh.40, on allotment sh.70 (comprising premium), on first call sh.30, on final call sh.10.

Applications were received for 1,500,000 shares. The management refused application for 100,000 shares for that they returned the money.
The successful applicants were issued with 5 shares for every 7 applied for and the balance of the application money was transferred to allotment.

The first call was made in November and the amounts received except for 50,000 shares.

The amount because of final call was also received except for 100,000 shares.

It was resolved that the shares be forfeited and be re-issued to Mr. Rich for sh. 60.

Required: Journal entries to record the above.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M9551

Have any Question? 

Related Questions in Financial Accounting

Broussard skateboards sales are expected to increase by 20

Broussard Skateboard's sales are expected to increase by 20% from $8.8 million in 2016 to $10.56 million in 2017. Its assets totaled $6 million at the end of 2016. Broussard is already at full capacity, so its assets mus ...

In november 2015 kendall purchases a computer for 4000 she

In November 2015, Kendall purchases a computer for $4,000. She does not use Sec. 179 expensing. She only uses the most accelerated depreciation method possible. The computer is the only personal property which she places ...

Hong kong clothiers reported revenue of 5040000 for its

Hong Kong Clothiers reported revenue of $5,040,000 for its year ended December 31, 2016. Accounts receivable at December 31, 2015 and 2016, were $320,900 and $354,000, respectively. Using the direct method for reporting ...

Victory company uses weighted-average process costing to

Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the process. During Novemb ...

Backflush costing and jit production the grand meter

Backflush costing and JIT production. The Grand Meter Corporation manufactures electrical meters. For August, there were no beginning inventories of direct materials and no beginning or ending work in progress. Grand Met ...

Amy monroe wants to create a fund today that will enable

Amy Monroe wants to create a fund today that will enable her to withdraw $25,780 per year for 8 years, with the first withdrawal to take place 4 years from today. If the fund earns 10% interest, how much must Amy invest ...

Katie co appropriately uses the equity method to account

Katie Co. appropriately uses the equity method to account for its investment in Brent Corp. As of the end of 2011, Brent's common stock had suffered a significant decline in fair value, which is expected to be recovered ...

Kunkel company makes two products and uses a conventional

Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year fo ...

On 1 jan 2014 the horton corporation issued 10 bonds with a

On 1 Jan 2014, the Horton Corporation issued 10% bonds with a face value of $200,000. The bonds sold for $192,000. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 2018 ...

The production department in a process manufacturing system

The production department in a process manufacturing system completed 309,000 units of product and transferred them to finished goods during a recent period. Of these units, 89,000 were in process at the beginning of the ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate