Reference no: EM132918607

On 1 February 2020, the directors of Taylor Ltd invited applicants for 100,000 ordinary shares for an issue price of $5 per share, payable $3 on application, $1 on allotment and the balance when needed to be called later. By the 28 February 2020 closing date, applications for 130,000 shares were received. On 2 March 2020, the directors decided to issue 100,000 shares on a first-in-first-served basis to the applicants. The directors refunded the money in relation to unsuccessful applications on the same date.

• The allotment money was received by 20 March 2020. Share issue costs of $3,500 were also paid on the same date.
• On 10 November 2020, the directors made a call for the remaining unpaid balance. All outstanding call monies except a parcel of 10,000 shares were received by 30 November 2020. The directors decided to forfeit the 10,000 shares on the same date. On 10 December 2020, the forfeited shares were reissued as fully paid ordinary shares for a consideration of $4.60 per share. The constitution allows for the refund of any balance in the forfeited shares account after reissue to former shareholders.

Problem 1: Prepare journal entries to record all of the above events ?