QUESTION 5 Patch Garden plans to distribute $160 000 in dividends. It has 20,000 7...
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Accounting
QUESTION 5
Patch Garden plans to distribute $160 000 in dividends. It has 20,000 7 per cent preferred share (cumulative) originally issued at $10 and 60 000 ordinary shares. How much will be distributed per share on preferred and ordinary shares?
Preferred shares $1.68; Ordinary shares $1.68
Preferred shares $0.70; Ordinary shares $2.43
Preferred shares $3.35; Ordinary shares $1.12
Preferred shares $0.70; Ordinary shares $2.26
QUESTION 6
Wolfgang issue shares via installment. On 1st June they issue a prospectus to potential investors advertising that they will sell 1,000,000 shares at $1 each. Payable $0.60 on application, $0.30 on allotment, and $0.10 on call. By 15th September, the applications are all received, and 1,500,000 share applications were received. On 30th September, Wolfgang decide to apply excess applications to allotment.
What journal entry should be entered on 15th September?
Dr Cash Trust $500,000
Cr Application $500,000
Dr Cash Trust $1,000,000
Cr Application $1,000,000
Dr Cash Trust $900,000
Cr Application $900,000
Dr Application $250,000
Cr Cash Trust $250,000
Dr Cash Trust $900,000
Cr Application $900,000
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