Journal entries to account of taylor ltd

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Reference no: EM132420720

Problem: Taylor ltd makes an offer to the public for investors to subscribe for 10 million shares. The shares are issued at $2 per share. applications for shares close on 15 July 2019, with $ 1 being paid on application and a further $1 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 an excess paid on application to be offset against the amount due on allotment. The shares are allotted on 20 July 2019

Subsequently, holder 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

Question: Provide the journal entries to account for the above event.

Reference no: EM132420720

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