Semaphore Ltd Called for Subscriptions for 15 Million Shares

question 50

Multiple Choice

Semaphore Ltd called for subscriptions for 15 million shares.The issue price per share is $2.50 to be paid in two parts: the first payment of $1.00 is to be made on application and the remaining $1.50 is to be paid within 1 month of allotment.At the end of September,when applications close,applications for 19 million shares have been received.The shares are allotted on 1 October on a pro rata basis with the excess application money to be applied against the amount due on allotment.All amounts on allotment are paid by the due date.What are the accounting entries to record these events?

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Definitions:

Closely Related

Items, concepts, or entities that have a direct or strong connection to each other, often affecting each other's behavior or characteristics.

Product Line

A group of related products marketed under a single brand name that are often used together or cater to a similar market segment.

Closely Related

Items or concepts that are very similar or connected in nature or function.

Same Customer Group

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