ABC share capital consisted of 5,000 ordinary shares issued for $2 each and paid $1.00...
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Accounting
ABC share capital consisted of 5,000 ordinary shares issued for $2 each and paid $1.00 on application. A call of $0.40 per share was made on 1 June 2016, the final date for payment being 1 July. Call monies were received on all but one parcel of 500 shares. After serving notice to the shareholders, the directors met on 1 August and decided to forfeit the shares. The directors decided on 10 August 2016 to reissue the 500 forfeited shares to existing members for a consideration of $1.10 per share. The monies from the sale of the forfeited shares were received on 10 September 2016 and at the same date returned any surplus amount to the original holder. On 20 September 2016, the directors announced a final call and the corresponding amounts were all collected.
Required:
Prepare all the necessary journal entries to record the business transactions.
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