Peterson Company Is Issuing 4 000 Ordinary Shares, Payable by Instalments

question 67

Multiple Choice

Peterson Company is issuing 4 000 ordinary shares, payable by instalments. Investors must pay $10 per share on application, $5 per share on allotment, and there will be a final call of $2 payable at a later date to be determined by directors. The journal entry to record the application will be:

• A)debit Trust bank account, credit Application.
• B)debit Cash, credit Ordinary share capital.
• C)debit Cash, credit Allotment.
• D)debit Application, credit Trust bank account..

Understand the difficulty and processes involved in rebuilding trust and restoring integrity in relationships.

Grasp the concept of justice in organizational and negotiation contexts.

Acknowledge the role of relationship preservation and strategy development in negotiations.

Understand the different forms and dynamics of relationships in negotiation.

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Definitions:

Perfectly Inelastic

A situation in market demand or supply where the quantity demanded or supplied does not change regardless of changes in price.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to a state of balance in the market.

Equilibrium Quantity

The amount of goods or services supplied that is exactly equal to the amount of goods or services demanded at a particular price level.

Demand

The total amount of a product or service that consumers are willing and able to purchase at various price levels at a given time.