Obama Company issued 1 million ordinary shares

Obama Company issued 1 million ordinary shares on 1 January 2014 having face value of $1 each at an issue price of $1.5 per share. As per the terms of the issue, $1.25 per share had been received by the Company on 1 January 2014 while the remaining amount was received in full on 30 June 2014.Required:A) State the journal entries required to account for the above transactions.B) Explain the concepts and reasoning for the entry.

 

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