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Minstrel Ltd decided to issue 200 000 ordinary shares for $2.50 each, payable in instalments,...

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Accounting

Minstrel Ltd decided to issue 200 000 ordinary shares for $2.50 each, payable in instalments, $1 on application, $1 on allotment and the balance payable at the discretion of the company. Applications were received for 220 000 shares. The shares were allotted by the directors at a meeting held a week after the close of applications. After refunding applications for 20 000 shares, which of the following is the correct journal entry to transfer the application money to the share capital account?

Group of answer choices

DR Application $200 000; CR Share capital $200 000

DR Application $220 000; CR Share capital $220 000

DR Cash trust account $200 000; CR Share capital account $200 000

DR Application $220 000; CR Cash trust account $220 000

On 28 February 2024, Xavier Ltd declared and distributed an 8% share dividend (bonus issue). At that date the entity's total share capital was $180 000, fully paid to $1.

The market price of the shares on 28 February was $1.10. What is the effect of this dividend on Xavier Ltd's total shareholders' equity?

Group of answer choices

an increase of $15 840

No effect

Increase of $14 400 Decrease of $14 400

Answer & Explanation Solved by verified expert
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