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25.Lotus Company Ltd decided to issue 100 000 ordinary shares for $3.00 each, payable in...

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Accounting

25.Lotus Company Ltd decided to issue 100 000 ordinary shares for $3.00 each, payable in instalments, 50c on application, $1.50 on allotment and the balance payable at the discretion of the company. Applications were received for 120 000 shares. The shares were allotted by the directors a week after the close of applications and refunds were made for 20 000 shares. Twelve months after the allotment monies had been received the directors made a call for the remaining $1 per share. The correct journal entry to record the amount due to the company for the call instalment is:

Group of answer choices

1.DR Call $100 000; CR Share capital $100 000

2.No accounting entry is required

3.DR Call $120 000; CR Share capital $120 000

4.DR Share capital $100 000; CR Call $100 000

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