Signal Ltd Called for Subscriptions for 8 Million Shares

question 26

Multiple Choice

Signal Ltd called for subscriptions for 8 million shares.The issue price per share is $3.50 to be paid in three parts: the first payment of $1.00 is to be made on application,$1.50 is to be paid within 1 month of allotment and the remaining $1.00 is to be paid within 3 months of allotment.At the end of July,when applications close,applications for 10 million shares have been received.The shares are allotted on 1 August on a pro rata basis with the excess application money to be applied against the amount due on allotment.The first and final call on the shares is made on 1October.Assume all amounts on allotment and call are paid by the due date.What are the accounting entries to record these events?

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Definitions:

Body Dysmorphic Disorder

A mental health condition where a person can't stop thinking about perceived defects or flaws in their appearance.

Hoarding Disorder

A disorder in which people feel compelled to save items and experience significant distress if they try to discard them, resulting in an excessive accumulation of items and possessions.

Rational-emotive Therapy

A form of cognitive behavioral therapy focusing on identifying and changing irrational beliefs and patterns of thinking that can lead to emotional and behavioral issues.

Modeling

The process by which individuals learn by observing the behaviors of others and the outcomes of those behaviors.