Broadbeach Ltd was registered on 28 December 20X0.Broadbeach Ltd has a financial year end of 31 March.On 29 December 20X0 it lodged a prospectus with ASIC inviting investors to acquire 3 000 000 shares.By the closing date of 28 February 20X1 applications for 9 000 000 shares had been received.During March 20X1 the directors allotted the 3 000 000 shares to the applicants in proportion to the number of shares originally applied for.The terms of the issue are as follows:
 issue price of $10.00 per share
 $4.00 payable on application
 $4.00 payable on allotment
 $1.00 payable on 30 June 20X1
 $1.00 payable on 31 December 20X1
-How much money would the company hold from this subscription on 30 June 20X1, assuming that applications can be credited to calls in advance and that all call money was received?

Question

Broadbeach Ltd was registered on 28 December 20X0.Broadbeach Ltd has a financial year end of 31 March.On 29 December 20X0 it lodged a prospectus with ASIC inviting investors to acquire 3 000 000 shares.By the closing date of 28 February 20X1 applications for 9 000 000 shares had been received.During March 20X1 the directors allotted the 3 000 000 shares to the applicants in proportion to the number of shares originally applied for.The terms of the issue are as follows:
  issue price of $10.00 per share
  $4.00 payable on application
  $4.00 payable on allotment
  $1.00 payable on 30 June 20X1
  $1.00 payable on 31 December 20X1
-How much money would the company hold from this subscription on 30 June 20X1, assuming that applications can be credited to calls in advance and that all call money was received?

Quizplus · Accepted Answer

By 30 June 20X1, Broadbeach Ltd would have received $8 per share ($4 on application + $4 on allotment) for 3,000,000 shares, totaling $24,000,000. Additionally, the first $1 call due on 30 June 20X1 would add another $3,000,000, making the total $27,000,000. However, the question asks for the amount in thousands, so the correct answer is $27,000, which corresponds to choice D.

Broadbeach Ltd Was Registered on 28 December 20X0