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    Markvu3112's Avatar
    Markvu3112 Posts: 3, Reputation: 1
    New Member
     
    #1

    Aug 21, 2014, 07:47 AM
    Can some one help me please, Thanks!
    Calls on shares, forfeiture, issue and exercise of options, redemption of preference shares.
    Cajun Ltd’s equity at 30 June 2013 was as follows:
    400,000 ordinary shares, issued at $1.60, fully paid $ 640,000
    450,000 ordinary shares, issued at $2, called to $1.10 495,000
    170,000 redeemable preference shares, issued at $1, fully paid 170,000
    Calls in advance (10,000 ordinary shares) 7,000
    Share issue costs (7,000)
    General reserve 60,000
    Retained earnings 310,000
    The following events occurred during the year ended 30 June 2014:
    2013
    July 15 The final call, due 31 August, was made on the partly paid shares.
    Aug. 31 All call money was received, except for that due on 23,000 shares.
    Sept 10 In accordance with the constitution, the shares on which the call was unpaid were forfeited. The company is entitled to keep any balance from forfeiture of shares.
    Oct. 1 The company offered ordinary shareholders 1 option (at a price of 90 cents per option) for every 5 shares held. Each option entitled the holder to buy 1 ordinary share at a price of $1.50 per share, exercisable on or before 15 April 2014.
    31 65,000 options were taken up by shareholders, for which all money due was received.
    2014
    Jan. 3 A prospectus was issued, inviting applications for 90,000 ordinary shares at an issue price of $2, payable in full on application. The purpose of the issue was to fund the redemption of the preference shares. The issue was underwritten at a commission of $5,900.
    31 The issue closed fully subscribed, with all money due having been received.
    Feb. 5 The 90,000 shares were allotted, and the underwriting commission was paid.
    18 The directors resolved to redeem the preference shares out of the proceeds of the January share issue for $1.01 per share.
    26 Cheques were issued to the preference shareholders.
    April 15 50,000 shares were issued as a result of 50,000 options having been exercised, for which money had been received. The unexercised options lapsed.
    Required
    Prepare general journal entries to record the above transactions.
    smoothy's Avatar
    smoothy Posts: 25,490, Reputation: 2853
    Uber Member
     
    #2

    Aug 21, 2014, 07:59 AM
    Quote Originally Posted by Markvu3112 View Post
    Calls on shares, forfeiture, issue and exercise of options, redemption of preference shares.
    Cajun Ltd's equity at 30 June 2013 was as follows:
    400,000 ordinary shares, issued at $1.60, fully paid $ 640,000
    450,000 ordinary shares, issued at $2, called to $1.10 495,000
    170,000 redeemable preference shares, issued at $1, fully paid 170,000
    Calls in advance (10,000 ordinary shares) 7,000
    Share issue costs (7,000)
    General reserve 60,000
    Retained earnings 310,000
    The following events occurred during the year ended 30 June 2014:
    2013
    July 15 The final call, due 31 August, was made on the partly paid shares.
    Aug. 31 All call money was received, except for that due on 23,000 shares.
    Sept 10 In accordance with the constitution, the shares on which the call was unpaid were forfeited. The company is entitled to keep any balance from forfeiture of shares.
    Oct. 1 The company offered ordinary shareholders 1 option (at a price of 90 cents per option) for every 5 shares held. Each option entitled the holder to buy 1 ordinary share at a price of $1.50 per share, exercisable on or before 15 April 2014.
    31 65,000 options were taken up by shareholders, for which all money due was received.
    2014
    Jan. 3 A prospectus was issued, inviting applications for 90,000 ordinary shares at an issue price of $2, payable in full on application. The purpose of the issue was to fund the redemption of the preference shares. The issue was underwritten at a commission of $5,900.
    31 The issue closed fully subscribed, with all money due having been received.
    Feb. 5 The 90,000 shares were allotted, and the underwriting commission was paid.
    18 The directors resolved to redeem the preference shares out of the proceeds of the January share issue for $1.01 per share.
    26 Cheques were issued to the preference shareholders.
    April 15 50,000 shares were issued as a result of 50,000 options having been exercised, for which money had been received. The unexercised options lapsed.
    Required
    Prepare general journal entries to record the above transactions.
    You failed to show any of your work as required by the site rules. All you did was cut and paste your homework assignment..
    odinn7's Avatar
    odinn7 Posts: 7,691, Reputation: 1547
    Entomology Expert
     
    #3

    Aug 21, 2014, 08:12 AM
    Help you or do it all for you so you don't have to?

    We don't do your homework for you.
    Markvu3112's Avatar
    Markvu3112 Posts: 3, Reputation: 1
    New Member
     
    #4

    Aug 21, 2014, 08:28 AM
    I have tried but I don't know it's right or wrong.. and some where I cant work out the number
    2013
    15/7 Dr call - ordinary 495000
    Cr Share capital - ordinary 495000
    Dr Cash in advance 7000
    Cr Share capital - ordinary 7000

    31/8 Dr Cash
    Cr Share capital - ordinary

    10/9 Dr Share capital - ordinary 23000
    Cr call ordinary
    Cr Forfeited Shares Reserve

    31/10 Dr Cash 58500
    Cr share option 58500

    2014
    31/1 Dr Cash Trust 180000
    Cr Application - ordinary 180000

    5/2 Dr Application - ordinary
    Cr share capital - ordinary
    Dr Cash
    Cr Share capital - ordinary

    5/2 Dr Share issue costs/ share capital 7000
    Cr Cash Trust 7000

    18/2 Dr Share Capital – Preference
    Dr Retained Earnings
    Cr Cash 90900

    26/2 Dr Shareholders ' Redemption
    Cr Cash

    15/4 Dr Cash
    Cr Share options
    Dr Share options 45000
    Cr Cash
    Cr Lapsed options reserve
    Markvu3112's Avatar
    Markvu3112 Posts: 3, Reputation: 1
    New Member
     
    #5

    Aug 21, 2014, 11:32 PM
    Quote Originally Posted by odinn7 View Post
    Help you or do it all for you so you don't have to?

    We don't do your homework for you.
    I have post what I got in other post... I mean you guys help me, not do all for me...

    Quote Originally Posted by smoothy View Post
    You failed to show any of your work as required by the site rules. All you did was cut and paste your homework assignment..
    I have post what I got in other post... I mean you guys help me, not do all for me...

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