The final call was made on 1 November with money due by 30 November All money

The final call was made on 1 november with money due

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The final call was made on 1 November with money due by 30 November. All money was received on the due date except for the holder of 30 000 shares who failed to meet the final call. On 7 December, as provided for in the constitution, the directors decided to forfeit these shares. They were reissued, on 15 December, as paid to $6 for $5.60 cash. The balance of the Forfeited Shares account was returned to the former shareholder on 16 December. Required Prepare the journal entries to record the transactions of Gum Ltd up to and including that which took place on 16 December 2017. (Show all workings.) GUM LTD General Journal 2017 August 15 Cash Trust Dr 4 200 000 Application Cr 4 200 000 (Cash received on application) August 16 Application Dr 3 000 000 Allotment Dr 2 000 000 Share Capital Cr 5 000 000 (Allotment of 1 000 000 shares) Cash Cash Trust Dr Cr 4 200 000 4 200 000 (Transfer of trust funds) Application * Allotment Dr Cr 1 200 000 1 000 000 Calls in Advance Cr 200 000 (Allocation of application across allotment and calls in advance)
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Solutions Manual 3 Week 12 August 28 Share Issue Costs/Share Capital Dr 14 000 Cash Cr 14 000 (Payment of underwriting commission and other share issue costs [$8 000 + $6 000]) September 15 Cash Dr 1 000 000 Allotment Cr 1 000 000 (Cash received on allotment) 2017 November 1 Call Dr 1 000 000 Share Capital Cr 1 000 000 (Call of $1 per share) Calls in Advance Dr 200 000 Call Cr 200 000 (Transfer of calls received in advance) November 30 Cash Call (Cash received on 770 000 shares) Dr Cr 770 000 770 000
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