Accounting entries for share issue (video below)

ABC , a limited liability company, issued 500,000 ordinary shares of 20 cents each at a price of $1.3 per share, all received in cash.

What should be the accounting entries to record this issue?

Answer

$

Debit: cash ( 500,000 x 1.3)                      650,000

Credit: share capital (500,000 x 0.2)                         100,000

Credit : share premium ( 500,000 x 1.1)                     550,000

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