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
103,200
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.