Exam 3: Shareholders Equity: Share Capital and Reserves

Use the following information to answer questions 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 reissue of forfeited shares is:

In relation to an asset revaluation surplus, an entity

Which of the following journal entries demonstrates the appropriate accounting treatment for share issue costs?

AASB 101 requires that a reconciliation between the carrying amount of each class of contributed equity capital and each reserve at the beginning and end of each period be disclosed in:

AASB 101 requires that information in relation to dividends paid or declared during the year be disclosed in:

In respect to the issue of shares by a company, what is an IPO?

Use the following information to answer questions 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 amount of the surplus payable to the shareholders whose shares were forfeited is:

If the balance in a forfeited shares account is refundable to the owners of those shares, then the forfeited shares account is classified as a component of:

The balance in the retained earnings account is affected by the transfer to that account of: I Issued share capital II dividends paid or provided for III Transfers to or from other reserve accounts IV Changes in accounting policies and errors