1. Goofy Ltd was incorporated on 1 July 2016 and issued a prospectus inviting applications for 500,000 ordinary shares at an issue price of $10. The shares are payable are follows:
• $5 payable on application
• $3 payable on allotment
• $2 payable on call to be made 30th September 2016
The transactions for the period were as follows:
31August2016: Applications were received for 580,000shares.
3 September 2016: Applications for 80,000 were rejected by the directors and the application money was returned to the shareholders concerned.
4 September 2016: The Company allotted 500,000 shares to the remaining applicants.
25 September 2016: All the allotment money was received.
30 September 2016: The call was made on the shares, payable by 31 October 2016.
31October2016:Call money was received from the shareholders of only 460,000shares.
31 December 2016: The remaining 40,000 shares were forfeited. The forfeited shares were offered to an investment company at a price of $8.50 per share paid to$10 and the transfer was completed on 31 March 2017.The costs of reissue amounted to $1,800.
The company's constitution states that any forfeited shares must be refunded to the shareholders.
30 April 2017: These shareholders received a refund for the amount owed to them.
Required: Prepare the general journal entries in the books of Goofy Ltd to record the above transactions.
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