larry ltd was registered as a new company on 3rd January 2020 and issued a prospectus...
larry ltd was registered as a new company on 3rd January 2020 and issued a prospectus inviting applications for 700000 at $4 each. $1.5 was payable on application, a further $2 was payable on allotment and final $0.5 was payable on a call to be made on 15th august 2020. Applications closed on 16h feb 2020 and the total application for 725000 shares were recieved. This includes one applicant who paid for 30000 shares in full. The directors allotted the shares on 28 feb 2020 as follows-;
- The application for 30000 shares who paid in full was alloted 30000 shares, applications for 25000 shares were rejected and the application money was refunded, and the remaining applicants were allotted based on their applications.
- On 26 march 2020 all allotment monies due were paid and another shareholder of 23000 shares also paid the remaining $0.5 per share. Share issue cost of $2500 were paid on 14th april 2020.
- The call was made as scheduled and all money was received except for one shareholder of 3000 shares that did not pay by the 30th September 2020
Prepare all necessary journal entries to account for the issue of the shares and all transactions up to 30th September 2020.
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larry ltd was registered as a new company on 3rd January 2020
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