ACC – 514 Assessment
Question 2 Accounting for share capital Rippa Ltd was incorporated on 1 July 2017. The following transactions and events occurred during the year ended 30 June 2018: 1 Jul 2017: Rippa Ltd makes an offer to the public for investors to subscribe for 5,000,000 shares, at an issue price of $4.00 per share, with $2.50 payable on application, $1.00 being payable within one month of allotment, and $0.50 payable on a call to be made at a later date. The issue is underwritten at a commission of $12,000. 31 Jul 2017: Applications close, with applications received for 6,000,000 shares. 10 Aug 2017: 5,000,000 shares are allotted in proportion to the number of shares for which applications had been made.…
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