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Question - Apia Ltd was registered as a company on 1 January 2019. On this day a prospectus was issued calling for applications for 200,000 shares at an issue price of $5. The shares were payable
$2.50 on application
$1.50 on allotment
$1.00 on call
Applications closed on 31 January 2019 with the company receiving 300,000 applications, together with the specified application money. The shares were allotted on 15 February, with all applicants receiving shares on a pro-rata basis.
All remaining allotment money was received by 28 February 2019.
On 1 July 2019, a call was made for the remaining $1.00 per share still owing. All call money except that payable on 10,000 shares was received by 31 August 2019.
Required - Prepare journal entries and ledger accounts showing the balances at 31 August 2019.
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