Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

On 1 August 2014, Piper Ltd makes an offer of 1,000,000 ordinary shares to the public. The shares are to be issued at $2 per share, payable as follows:
$0.80 on application (due 31 August)
$0.80 on allotment (due 30 September)
$0.40 on final call
By 31 August 2014, applications had been received for 1,100,000 ordinary shares. Shares were allotted on 2 September 2014. To deal with the oversubscription, Piper Ltd provided a refund to unsuccessful applicants.
The issue was underwritten at a commission of $12,500, and this commission was paid on 15 September 2014. All amounts due on allotment are paid by the due date.
The final call was made on 1 December 2014 with money due by 31 December 2014. All money was received on the due date except for the holder of 50,000 shares who failed to meet the final call. On 5 January 2015, the shares on which the call was unpaid were forfeited. According to the constitution, a refund is to be provided to former shareholders, and this refund was paid on 7 January 2015.
On 3 March 2015, Piper Ltd makes a private placement of redeemable preference shares, and 500,000 6% redeemable preference shares are issued at a price of $3 per share. These shares are classified as equity, and are redeemable at a 10% premium. On 30 April 2017, the preference shares are redeemed out of profits and cheques are sent to preference shareholders on 2 May 2017.

Required:
Prepare the general journal entries to record the transactions of Piper Ltd for the events outlined above. Show all workings. Ignore preference share dividend payments.

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M939990

Have any Question? 


Related Questions in Accounting Basics

Assignmentyour accounting firm has been asked to recommend

Assignment Your accounting firm has been asked to recommend an online accounting system for several businesses who are looking to automate their accounting. Research five online accounting systems (including QuickBooks O ...

Discussionsustainable income and ratio analysis please

Discussion "Sustainable Income and Ratio Analysis" Please respond to the following: • Describe sustainable income and the importance of sustainable income in the evaluation of the income statement. Choose at least two it ...

Question 1the board of directors is considering updating

Question 1 The board of directors is considering updating the fleet of vehicles of the company which are used to ship goods to markets all around the United States. They will be leasing the vehicles as opposed to purchas ...

1 mrs beach wants to invest a lump sum of money today to

1. Mrs. Beach wants to invest a lump sum of money today to have $100,000 when she retires at 65 (she is 40 today). a. How much of a deposit would she have to make if the interest rate on the C.D. was 5%? b. What would Mr ...

Q1 what was the logic behind the gentiles who asked for

Q.1 what was the logic behind the gentiles who asked for chanja Finkelsztjains world goods( and similar anecdotes) Q.2 how does the author regard the plundering of the Jews? Q.3 Why did so many Jews leave valuables with ...

Assignmentattn ashok -find the interest rate on a loan

Assignment Attn: Ashok -Find the interest rate on a loan charging $912 simple interest on a principal of $4750 after 6 years. Find the principal of a loan at 6.2% if the simple interest after 5 years 6 months is $2387. H ...

Assessment - written report - individual assessment purpose

Assessment - Written Report - individual assessment Purpose: This assessment is designed to reinforce the subject content and develop students' skills and application of knowledge of the subject content to business situa ...

Accounting for governmenttrue or false1 a fund in itself is

ACCOUNTING FOR GOVERNMENT True or False 1. A fund in itself is a separate legal entity that is established to comply with laws that require that certain transactions be segregated and accounted for as a separate "fund." ...

Conduct a cost analysis of gas versus electric vehicle find

Conduct a cost analysis of gas versus electric vehicle. Find the break-even point assuming gasoline is $3.00/gallon with an average of 22 miles per gallon that costs $25,000. Compared to an electric vehicle for $35,000 t ...

Financial paperso the idea is to have the same lenght

Financial Paper So the idea is to have the same lenght, quality and structure. The only thing missing on this paper is a conclusion, that will have to be at least half a page. The company to be compare on the paper will ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro