Reference no: EM132569377

Question - Staple Ltd was incorporated on the 1st July 20X2. On that date the company issued a prospectus to the public offering 10,000 ordinary shares at an issue price of $8.00 per share, payable as follows:

- $2.00 on application which closes on 31st August 20X2

- $2.00 on allotment

- $4.00 on calls at the company's discretion.

Applications were received for 18,000 shares on the required date as follows:

Applicants for 3,000 shares paid for their shares in full (ie $8.00 per share)

The remaining applicants paid only the amount required for application.

The shares were allotted on the 1st September 20X2 as follows:

Those applicants who paid for their shares in full were allotted all the shares applied for. Any excess money was held and applied to the allotment and future calls.

1,000 shares by other applicants were refused and their money refunded.

The remaining applications were issued in proportion to their applications and any excess money held and applied to the allotment.

Required - Prepare the general journal entries in the records of Staple Ltd to record all the events described above.