Signal Ltd Called for Subscriptions for 8 Million Shares

question 60

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:

Codominance

An outcome in which a trait that is determined by two alleles is different from the trait produced by either of the contributing alleles alone.

Recessive Trait

A genetic feature or condition that is expressed in an organism only when two copies of the gene are present, often masked by the presence of a dominant allele when only one copy is present.

Homozygous Genotype

An organism's genetic makeup consisting of two identical alleles for a particular trait.

Heterozygous

Having inherited two genes of different allelic forms for a trait.