lala
EXAMPLE - QUIZ
QUESTIONS
1. Prepare journal entries to record the following transactions of a public company: (3 Marks)
a) 1 Feb. 2009 Omega Ltd issued a prospectus inviting subscription for 500,000 ordinary shares at an issue price of $2.00 each, payable in full on application.
b) 20 Feb. 2009 Applications closed and 500,000 shares were received.
c) 28 Feb 2009 Directors allotted the shares
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2. What is a rights issue? (1 Mark)
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3. Prepare journal entries to record the following related transactions of a public company. (3 Marks)
a) The company issued 40,000 options at 50 cents each to acquire shares at $5 each in this company
b) The holders of 36,000 options then exercised their rights to acquire shares in the company
c) For the options not exercised, the company transfers the option balance to an options reserve account.
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QUESTIONS
1. Prepare journal entries to record the following transactions of a public company: (3 Marks)
a) 1 Feb. 2009 Omega Ltd issued a prospectus inviting subscription for 500,000 ordinary shares at an issue price of $2.00 each, payable in full on application.
b) 20 Feb. 2009 Applications closed and 500,000 shares were received.
c) 28 Feb 2009 Directors allotted the shares
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2. What is a rights issue? (1 Mark)
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
3. Prepare journal entries to record the following related transactions of a public company. (3 Marks)
a) The company issued 40,000 options at 50 cents each to acquire shares at $5 each in this company
b) The holders of 36,000 options then exercised their rights to acquire shares in the company
c) For the options not exercised, the company transfers the option balance to an options reserve account.
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