Which of the Following Statements Correctly Describes This Journal Entry

question 7

Multiple Choice

Which of the following statements correctly describes this journal entry: $$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Cash at bank } & 160000 & \\\hline \mathrm { Dr } & \text { Forfeited shares account } & 40000 & \\\hline \mathrm { Cr } & \text { Share capital } & & 200000 \\\hline \mathrm { Dr } & \text { Forfeited shares account } & 2500 & \\\hline \mathrm { Cr } & \text { Cash at bank } & & 2500 \\\hline\end{array}$$

• A) The entry is for an entity not listed on the Australian Stock exchange and shows the buy back of shares as a result of a resolution of the Board.
• B) The entry is for an entity listed on the Australian Stock exchange and shows the buy back of shares as a result of a resolution of the Board.
• C) The entry is for an entity not listed on the Australian Stock exchange and shows the forfeiture of shares as a result of a failure by some shareholders to meet a call on the shares.
• D) The entry is for an entity listed on the Australian Stock exchange and shows the forfeiture of shares as a result of a failure by some shareholders to meet a call on the shares.

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Definitions:

Private-sector Counterparts

Refers to organizations and businesses in the non-public sector that correspond or are equivalent to entities in the public sector.

Good Faith Bargaining

An approach where negotiating parties engage in sincere, honest, and open discussions to reach a mutually beneficial agreement.

Reasonable Place

A setting or location that is considered appropriate and adequate under given circumstances.

Interest-based Bargaining

Interest-based Bargaining is a negotiation strategy focusing on the underlying interests of the parties rather than predetermined positions or demands.