Reference no: EM132631273

Question - Graze Ltd is was incorporated on 1 July 2019. The following transactions and events occurred during the year ended 30 June 2020:

1 August A prospectus is issued inviting applications for 1,500,000 ordinary shares at an issue price of $5.00 each, with $3.00 payable on application, $1.00 within one month of allotment, and $1.00 on a call to be made at a later date. The issue is underwritten at a commission of $8,500.

31 August Applications close with the share applications received for 1,650,000 shares.

15 September Shares are allotted on a pro-rata basis. The surplus application money is offset against the amount payable on allotment. The underwriter is paid their commission.

15 October All allotment money is received.

9 February The call is made, with money due by 8 April 2020.

8 April All call money is received except for holders of 80,000 shares who fail to meet the call.

2 May The directors forfeit the shares on which call monies are unpaid.

5 June The forfeited shares are reissued as fully paid for consideration of $4.60 per share. Costs of forfeiture and reissue amounted to $3,900, and are paid. The balance in the forfeited shares account is returned to the former shareholders on this date.

Required - Make the journal entries necessary to account for the above transactions and events. Show all relevant dates.