Question 2
On 1 March 2020, ABC Ltd was registered and a prospectus was issued inviting applications for
1,000,000 ordinary shares at an issue price of $5. The shares were payable $2 on application, $2 on
allotment (due 30 April), and $1 on a final call (expected to be made after 2 years).
By 31 March 2020, applications had been received for 1,400,000 ordinary shares. On 1 April 2020,
1,000,000 ordinary shares were issued. The constitution allows the directors to apply excess
application money to the allotment account. All outstanding allotment money was received by the
due date, and share issue costs of $10,000 were paid on this date.
On 30 June 2020, ABC Ltd offered additional ordinary shares to all ordinary shareholders through
a 1 for 10 rights issue. The terms of the rights issue included an issue price of $4.50 per share. All
ordinary shareholders took up the offer
On 1 October 2020, ABC Ltd issued to existing ordinary shareholders 100,000 options to buy
100,000 ordinary shares. Each option costs 50 cents and entities the holder to buy one ordinary share
at a price of $2.50, exercisable on 31 October 2020. All options were exercised on that date.
On 30 November 2020, ABC Ltd paid interim dividend of 10 cents per share for ordinary shares.
Required
Prepare the journal entries to record the transactions of ABC Ltd for the events outlined above
(Total = 11 marks)
Answers: 1
Business, 21.06.2019 22:40
wilson's has 10,000 shares of common stock outstanding at a market price of $35 a share. the firm also has a bond issue outstanding with a total face value of $250,000 which is selling for 102 percent of face value. the cost of equity is 11 percent while the preminustax cost of debt is 8 percent. the firm has a beta of 1.1 and a tax rate of 34 percent. what is wilson's weighted average cost of capital?
Answers: 3
Business, 22.06.2019 10:50
Explain whether each of the following events increases, decreases, or has no effect on the unemployment rate and the labor-force participation rate.a. after a long search, jon finds a job.b. tyrion, a full-time college student, graduates and is immediately employed.c. after an unsuccessful job search, arya gives up looking and retires.d. daenerys quits her job to become a stay-at-home mom.e. sansa has a birthday, becomes an adult, but has no interest in working.f. jaime has a birthday, becomes an adult, and starts looking for a job.g. cersei dies while enjoying retirement.h. jorah dies working long hours at the office.
Answers: 2
Business, 22.06.2019 15:00
(a) what do you think will happen if the price of non-gm crops continues to rise? why? (b) what will happen if the price of non-gm food drops? why?
Answers: 2
Question 2
On 1 March 2020, ABC Ltd was registered and a prospectus was issued inviting applic...
On 1 March 2020, ABC Ltd was registered and a prospectus was issued inviting applic...
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