On 1 March 2020, Black Ltd was registered and offered 500 000 ordinary shares to the...

On 1 March 2020, Black Ltd was registered and offered 500 000 ordinary shares to the public at an issue price of $6, payable as follows:
$3 on application
$2 on allotment
$1 on final call
The share issue was successful, and all the allotment money was received by the due date. The final call was made on 1 November with money due by 30 November. All money was received on the due date except for the holder of 15 000 shares who failed to meet the final call.
On 7 December 2020, as provided for in the constitution, the directors decided to forfeit these shares. They were reissued, on 15 December 2020, as paid to $6 for $5.6 cash. Costs of forfeiture and reissue amounted to $4 000 and was paid on the same day. The balance of the Forfeited Shares account was returned to the former shareholder on 31 December 2020.

Prepare the journal entries to record the transactions of ABC Ltd for the events outlined above.

Expert Solution

ekkarill92 answered 2 years ago

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