Use the Following Information to Answer Questions 6 to 8

question 3

Multiple Choice

Use the following information to answer questions 6 to 8.
A company's capital consists of 50 000 ordinary shares issued at $2 and paid to $1 per share.
On 1 September, a first call of 50c was made on the ordinary shares. By 30 September, the call money received amounted to $22 500. No further payments were received, and on 31 October, the shares on which calls were outstanding were forfeited. On 15 November, the forfeited shares were reissued as paid to $1.50 for a payment of $1 per share. The appropriate cash amount from the reissue was received on 19 November. Costs of reissue amounted to $2 000. The company's constitution provided for any surplus on resale, after satisfaction of unpaid calls, accrued interest and costs, to be returned to the shareholders whose shares were forfeited.
-The entry to record the forfeiture of shares is:
Learning Objective 2.5 Account for the issue of both par value and no-par shares

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Definitions:

Attractiveness

The quality that makes something appealing or desirable.

Production Function

An equation that specifies the output that a firm can produce with various combinations of inputs, reflecting the relationship between input and output quantities.

Service Firms

Businesses that primarily offer intangible products, such as services or expertise, to their customers.