Reference no: EM132810645
Question - On 1 July 2020, Joe Ltd was incorporated, and on 7 July a prospectus was issued inviting applications for 100,000 shares at $10 each payable as follows:
-$3.50 on application,
-$4.50 on allotment,
-First Call of $0.30 to be made 3 months after the date of allotment.
-The Second Call of $1.70 will be called when necessary.
By 31 July, applications were received for 110,500 shares.
On 2 August, the directors allotted 100,000 shares to the applicants.
The excess fund from application will be used to pay for allotment.
On 6 August, the remaining due for allotment were received.
The holders of 10,500 shares did not pay for First Call.
Required - Prepare journal entries to record the above transactions.
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