Question

On 1 September 2020, New Angelia Ltd has on issue 80,000 ordinary $10 ($4.50 on application and $3.50 on allotment) shares which have been called to $2.00 per share. All call money is due by 30 September.

On 30 September, call money owing on 70,000 shares was received by due date.

The shares on which the call money was unpaid were forfeited on 5 October 2020. The constitution states that the money previously received from the shareholders who had their shares forfeited will be refunded back to the shareholders.

The 15 October, the forfeited shares were reissued at $9.00 fully paid to $10.00. The cost associated with the reissuing is $1,000.

The remaining balance on the forfeited share account was refund back to the shareholders on 30 October.

Question: journal entries to record the above transactions. Exclude journal narrations.

Answer 1