Online test A - A major retailing company Melbourne Ltd...

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A major retailing company, Melbourne Ltd issued a prospectus on the 1 st August 2013 calling for subscriptions for 8 million shares for a new class of share - Ordinary B issued at $4.00 on the following terms: The first payment of $2.00 is to be made on application, $1.00 is to be paid on allotment, the remaining amount is to be paid in two calls of 0.50 each. Additionally, according to the company's constitution any surplus monies after a forfeiture of shares are returned to the original shareholders. Applications closed on 31st October 2013 By the end of October, when applications closed, applications for 9.0 million shares have been received. The shares are allotted on 15 th November 2013 on a pro rata basis with the excess application money to be applied against the amount due on allotment and any calls and any further amounts remaining are refunded to the applicants. All allotment monies as due are received on the 1 st December 2013. The first call on the shares is made on 15
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Unformatted text preview: th January 2014. Call monies are received on the 15 ±ebruary 2014 from all shareholders. The second call was made on 31 March with the payment due date being 30 June 2014. Call monies were received from all shareholders except from the holders of 100,000 shares who did not pay the Fnal call. The Directors decide that these shares are forfeited and are to be reissued. On the 1 October 2014, the 100,000 shares are forfeited. One week later the shares are reissued as fully paid to a new shareholder for a receipt of $3.80 per share. Costs of reissue amount to $125 and any balance in the forfeited shares account is refunded to the original shareholder as per the company’s constitution. Required: Prepare Journal entries to record the above events. Narrations are required. Copy and paste this General Journal into the Answer section General Journal Date Details / Accounts Debit $ Credit $...
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