Reference no: EM133002464

Mr. Tony Soprano is the CEO of Soprano Industries. On the 31st of March 2020 Soprano Industries was registered with the NZ Companies Office. Soprano Industries has a balance date of 31 March. The prospectus offered for sale 1,000,000 ordinary shares at $7.50 each. External costs (advertising, legal fees, brokerage fees) associated with the issue were $105,000.

The monies were due as follows:

• $3.00 on application;
• $2.00 due on allotment; and
• $2.50 on call 3 months after the allotment of the shares.

Following is the timeline of events, April 1, 2020 - March 31, 2021:

1. April 1st Prospectus issued.
2. April 30th Received applications for 1,170,000 shares and all application monies.
3. May 7th 1,000,000 ordinary shares were allotted on a pro rata basis. The excess cash received on application is to be retained in the company and set off against amounts receivable at allotment.
4. May 31st All allotment monies due were received.
5. Aug 21st Remaining capital was called.
6. Sept 5th All call monies were received.
7. March 31st The Board declared a dividend of 20 cents per share. Shareholder approval for this dividend will be sought at the annual general meeting in May 2021.

Problem 1: Use the Spreadsheet to journalise the entries to record all of the following events in the books of Soprano Industries.