Prepare ledger accounts to record the following transactions for Poplar Ltd, ign
ID: 2463223 • Letter: P
Question
Prepare ledger accounts to record the following transactions for Poplar Ltd, ignoring preference share interest payments:
2015
July
1
A disclosure document was issued inviting applications for 100 000 ordinary shares at an issue price of $3, payable in full on application. The disclosure document also offered 50 000 10% redeemable preference shares at $2, fully payable on application. The issue was underwritten at a commission of $6500.
21
Applications closed with the ordinary issue oversubscribed by 20 000 and the preference shares undersubscribed by 15 000.
31
All shares were allotted with application money being refunded to unsuccessful applicants for ordinary shares.
Aug.
14
The underwriter paid amounts due less commission.
Dec.
1
The directors resolved to give each ordinary shareholder, free of charge, one option for every two shares held. The options are exercisable on 1 May 2018 and allow each holder to acquire one ordinary share at an exercise price of $2.70. Options not exercised on that date will lapse.
2018
March
1
A disclosure document was issued inviting applications for 100 000 ordinary shares at an issue price of $2.50, payable in full on application. The main purpose of the issue was to fund the redemption of the preference shares.
March
31
The issue was fully subscribed and all money due was received. The shares were then allotted.
April
10
The preference shares were redeemed at a price of $2.10 per share. The shares had been classified as equity in the financial statements.
May
1
The holders of 35 000 options elected to exercise those options and 35 000 ordinary shares were issued and cash received. All other options lapsed.
2015
July
1
A disclosure document was issued inviting applications for 100 000 ordinary shares at an issue price of $3, payable in full on application. The disclosure document also offered 50 000 10% redeemable preference shares at $2, fully payable on application. The issue was underwritten at a commission of $6500.
21
Applications closed with the ordinary issue oversubscribed by 20 000 and the preference shares undersubscribed by 15 000.
31
All shares were allotted with application money being refunded to unsuccessful applicants for ordinary shares.
Aug.
14
The underwriter paid amounts due less commission.
Dec.
1
The directors resolved to give each ordinary shareholder, free of charge, one option for every two shares held. The options are exercisable on 1 May 2018 and allow each holder to acquire one ordinary share at an exercise price of $2.70. Options not exercised on that date will lapse.
2018
March
1
A disclosure document was issued inviting applications for 100 000 ordinary shares at an issue price of $2.50, payable in full on application. The main purpose of the issue was to fund the redemption of the preference shares.
March
31
The issue was fully subscribed and all money due was received. The shares were then allotted.
April
10
The preference shares were redeemed at a price of $2.10 per share. The shares had been classified as equity in the financial statements.
May
1
The holders of 35 000 options elected to exercise those options and 35 000 ordinary shares were issued and cash received. All other options lapsed.
Explanation / Answer
POPLAR LTD
Share Capital - Ordinary
31/5/18
Balance c/d
644 500
31/7/15
Application - ord
300 000
31/3/18
Application -ord
250 000
1/5/18
Cash - ord
94 500
644 500
644 500
31/5/18
Balance b/d
644 500
Share Capital - Preference
10/4/18
Shareholders’ redemption
100 000
31/7/15
Application - pref
100 000
Cash Trust
21/7/15
Application - ord
360 000
31/7/15
Application - ord
60 000
21/7/15
Application - pref
70 000
31/7/15
Cash
370 000
430 000
430 000
31/3/18
Application - ord
250 000
31/3/18
Cash
250 000
250 000
250 000
Application – Ordinary
31/7/15
Share capital - ord
300 000
21/7/15
Cash trust
360 000
31/7/15
Cash trust (refund)
60 000
360 000
360 000
31/3/18
Share capital - ord
250 000
31/3/18
Cash trust
250 000
Application - Preference
31/7/15
Share capital - pref
100 000
21/7/15
Cash Trust
70 000
14/8/15
Cash and share issue costs
30 000
100 000
100 000
Cash (extract)
31/7/15
Cash trust
370 000
10/4/18
Shareholders’ redemption
105 000
14/8/15
Application - pref
23 500
31/3/18
Cash trust
250 000
1/5/18
Share Capital - ord
94 500
Share Issue Costs
14/8/15
Application - pref
6 500
Shareholders’ Redemption
10/4/18
Cash
105 000
10/4/18
Share capital -pref and retained earns.
105 000
Retained Earnings (extract)
10/4/18
Shareholders’ redemption
5 000
Share Capital - Ordinary
31/5/18
Balance c/d
644 500
31/7/15
Application - ord
300 000
31/3/18
Application -ord
250 000
1/5/18
Cash - ord
94 500
644 500
644 500
31/5/18
Balance b/d
644 500