Prepare all the necessary journal entries to account

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Reference no: EM133474150

Case: Chile Mine Ltd was registered as a new company 3rd January 2020 and issued a prospectus inviting applications for 500,000 shares at $6 each. $2 was payable on application, a further $2 was payable on allotment and the final $2 was payable on a call to be made on 1st July 2020.

Applications closed on 31 January 2020 a total of $1,080,000 was received. This included one applicant who paid for 20,000 shares in full.

Shares were fully subscribed and allotted on the 1st February 2020, no refunds were made.

On 26th of February 2020 all allotment monies due were paid and another shareholder of 5000 shares also paid the remaining $4 per share. Share issue costs of $2500 were paid on 14 March 2020.

The call was made on the 1st of July 2020 and all money was received except for one shareholder of 1000 shares that did not pay by the 30th July 2020.

Required

Question: Prepare all the necessary journal entries to account for the issue of the shares and all transactions up to 30th July 2020.

Reference no: EM133474150

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