Broadbeach Ltd Was Registered on 28 December 20X0 B) C)

Multiple Choice

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
-Assume that all calls were paid on time.What journal entry should Broadbeach Ltd process for the initial applications?

A)
$\begin{array} { l c c } \text { Accounts } & \text { Debit \$ } & \text { Credit \$ } \\\text { Bank Trust } & 36000000 & \\\text { Application } & & 36000000\end{array}$
B)
$\begin{array} { l c c } \text { Accounts } & \text { Debit \$ } & \text { Credit \$ } \\\text { Application } & 36000000 & \\\text { Paid up capital } & & 36000000\end{array}$
C)
$\begin{array} { l c c } \text { Accounts } & \text { Debit \$ } & \text { Credit \$ } \\\text { Application } & 12000000 & \\\text { Paid up capital } & & 12000000\end{array}$
D)
$\begin{array} { l c c } \text { Accounts } & \text { Debit \$ } & \text { Credit \$ } \\\text { Bank Trust } & 12000000 & \\\text { Application } & & 12000000\end{array}$