Financial Accounting and Reporting: Journal Entries for Orange Limited

This assignment presents a series of journal entries for Orange Limited, illustrating various financial transactions. These entries include the right issue of shares, first call money on ordinary shares, forfeiture of shares due to non-payment, stock option compensation expenses, and the issuance of debentures. Each entry is detailed with debit and credit amounts, providing a clear record of the company's financial activities during the specified period. The assignment also includes a list of bibliographies for further reading on advanced accounting and related topics, offering a comprehensive overview of Orange Limited's financial accounting and reporting practices. Desklib provides access to this and other solved assignments.

Running head: FINANCIAL ACCOUNTING AND REPORTING
Financial Accounting and Reporting
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1FINANCIAL ACCOUNTING AND REPORTING
Table of Contents
Journal entries in the records of Orange Limited:...........................................................................2
Bibliographies:.................................................................................................................................6

2FINANCIAL ACCOUNTING AND REPORTING
Journal entries in the records of Orange Limited:
In the Books of Orange Limited
Journal Entries
Date Particulars
Debit amount (in
$)
Credit amount (in
$)
1-Nov-
13 Bank Account………………………….Dr
46,80
0
To Share Capital Account
46,80
0
(Right issue of 1:5 for a value of $2.60 per
share issued on 18,000 'B' ordinary shares)
16-Jan-
14 Share First Call Account………………..Dr
165,00
0
To Share Capital Account
165,00
0
(First call money due on 110,000 'A'
ordinary shares @$1.50 per share was made
according to the directors' resolution
31-Jan-
14 Bank Account………………………….Dr
165,00
0

3FINANCIAL ACCOUNTING AND REPORTING
To Share First Call Account
165,00
0
(First call money on 110,000 'A' ordinary
shares @$1.50 per share was received)
5-Feb-
14 Share Capital Account………………….Dr
30,00
0
To Call-in-Arrear Account
15,00
0
To Forfeited Share Account
15,00
0
(10,000 'A' ordinary shares forfeited and
cancelled on account of non-receipt of the
call amount)
17-Mar-
14
Stock Option Compensation Expense
Account………Dr
35,00
0
To Stock Option Account
35,00
0
(Prospectus issued for 50,000 stock option
for 'A' ordinary shares at 70 cents per
option to be exercisable on 31 December
2018)

4FINANCIAL ACCOUNTING AND REPORTING
31-Mar-
14 Bank Account………………………….Dr
24,50
0
To Stock Option Account
24,50
0
(Stock option received and duly allocated
for 35,000 'A' ordinary shares
31-Dec-
15 Bank Account…………………………..Dr
18,90
0
To Stock Option Account
18,90
0
(Stock option received and duly allocated
for 27,000 'A' ordinary shares
31-Jan-
16
Profit and Loss Account…………………
Dr
2,20
0
To Stock Option Compensation
Expense Account
2,20
0
(Cost of issuing stock option capitalised)
1-Jun-17
Bank Account……………………………
Dr
60,00
0

5FINANCIAL ACCOUNTING AND REPORTING
To Debentures Account
(600 8% debentures issued at a par value of
$100)
30-Jun-
17
Debenture Issue Expense
Account………..Dr
1,20
0
To Bank Account
1,20
0
(Cost of debenture issue capitalised and
paid)

6FINANCIAL ACCOUNTING AND REPORTING
Bibliographies:
Beams, F.A., Brozovsky, J.A. and Shoulders, C.D., 2017. Advanced accounting. Pearson.
Green, W.L., 2014. History and Survey of Accountancy (RLE Accounting) (Vol. 38). Routledge.
Sangster, A., 2015. The genesis of double entry bookkeeping. The Accounting Review, 91(1),
pp.299-315.
Warren, C.S. and Jones, J., 2018. Corporate financial accounting. Cengage Learning.