A company issued 300,000 ordinary shares to the public,priced at $1.The shares were payable 50 cents on 1 July 2014 and 50 cents was uncalled.How much cash was due to the company on 1 July from the issue?

Question

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Since the shares were priced at $1, the total amount due from the issue would be 300,000 x $1 = $300,000. However, only 50 cents per share was payable on 1 July, which means the company would receive only 300,000 x 0.5 = $150,000 on that date. The remaining 50 cents per share would be due at a later date when the company calls for the uncalled amount. Therefore, the correct answer is A) $150,000.

A Company Issued 300,000 Ordinary Shares to the Public,priced at $1.The