On 1 April 2016, the directors of XYZ Ltd invited applicants for 200 000 ordinary share price of $4.5 per share, payable $3 on application, $1 on allotment and the balance when needed to be called at a later date.
By the 30 April 2016 closing date, applications for 210 000 shares were received.
On I May the directors decided to allot 200,000 ordinary shares on a first-in-first-served basis to the applicants.
The directors refunded the money in relation to unsuccessful applications.
The allotment money was received by 15 May 2016.
The issue was underwritten at a commission of was paid on 15 May 2016.
On 1 September 2016, the directors made a further call for the remaining unpaid balance.
All outstanding call monies except a parcel of 10 000 shares were received by 30 September.
On 1 October 2016, the directors decided to forfeit the 10 000 shares.
On 5 October 2016, the forfeited shares were reissued as fully paid ordinary shares for a consideration of $4.1 per share. Costs of forfeited and reissue amounted to $700. The balance related to forfeited shares was refunded to the former shareholders on 20 November.
On 1 December 2016, the directors decided to redeem 50,000 $100 debentures at a premium of 5%, i.e. at $105.
Prepare journal entries to record all of the above events.
Narrations/Descriptions are NOT required. (15 marks)
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