The Journal Entry to Record the Amount Receivable When a Call

question 34

Multiple Choice

The journal entry to record the amount receivable when a call is made by the company is:

• A) DR Call CR Share capital
• B) DR Allotment CR Share capital
• C) DR Share capital CR Call
• D) DR Cash trust CR Call

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Definitions:

Translation Gain/Loss

The gain or loss resulting from the conversion of foreign currency amounts into the functional currency of a business during the consolidation of financial statements.

Functional Currency

The currency of the primary economic environment in which a company operates, typically used in reporting its financial statements.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value.

Canadian Dollars

The official currency of Canada, commonly represented by the symbol CAD.