Semaphore Ltd Called for Subscriptions for 15 Million Shares

question 38

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:

Pyranose

A form of sugar characterized by a six-membered ring structure containing an oxygen atom.

Anomeric Carbon

The carbon atom in a carbohydrate molecule that was the carbonyl carbon before cyclization and is now attached to the oxygen of the hemiacetal or hemiketal group.

Haworth Structure

A method for representing the cyclic structure of monosaccharides with a simple three-dimensional perspective.

Positively Skewed

Refers to a distribution where the tail on the right side of the histogram is longer or fatter than the left side, indicating that data have a majority of their observations on the lower end.