The share capital of Gandalf Ltd on 30 June 2021 was: Share capital: 125,000 A...
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The share capital of Gandalf Ltd on 30 June 2021 was: Share capital: 125,000 A ordinary shares issued at $5, paid to $2.00 $250,000 90,000 B ordinary shares issued at $4, fully paid $360,000 $610,000 Required Prepare journal entries to record the following transactions in the records of Gandalf Ltd: 03 Nov 2021 The company makes a 1-for-6 rights offer to its B ordinary shareholders. The rights are renounceable and allow holders to obtain B ordinary shares for $2.80 per share, payable in full on application. 30 Nov 2021 The holders of 72 000 B ordinary shares accept the rights offer by the expiry date. The shares are duly allotted and all money is received. 17 Jan 2022 A call of $3.00 per share is made on all A ordinary shares. All call money except that owing by the holder of 8000 shares is received by 31 January 2022. 06 Feb 2022 Shares on which calls are unpaid are forfeited and cancelled, as per the companys constitution.
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