Reference no: EM132632063

Question - Tewantin Ltd makes an offer to the public for investors to subscribe for 10 million shares. The shares are issued at $2.00 per share. Applications for shares close on 15 July 2019, with $1.00 being paid on application and a further $1.00 being payable within one month of allotment.

By 15 July 2019 applications have been received for 11 million shares, and it is decided that all subscribers will receive shares on a pro rata basis, with any excess paid on application to be offset against the amount due on allotment. The shares are allotted on 20 July 2019. Subsequently, holders of 1 million shares fail to make their payments due on allotment by 20 August 2019. On 31 August the 1 million shares are forfeited and auctioned as fully paid. An amount of $1.50 is received for each share sold.

REQUIRED - Make the journal entries to account for the above events.