Reference no: EM132467709

On 31 May 2019, Ivana Ltd issued a prospectus for 180,000 ordinary shares at $2.50, payable $1.50 on Application, 50 cents on Allotment, 25 cents on Call #1 and the remaining on Call #2. Applications for 240,000 shares were received by 15 June 2019, of which 20,000 shares were paid in full on application.

Directors allotted the shares on 25 June 2019, and decided to:

Point 1: Allot shares to the applicants who paid in full and reject the application for 20,000 shares and refund the application money.

Point 2: Allot 4 shares for every 5 shares applied, to the remaining applicants. The surplus money from the applicants was to be transferred to allotment and/ or call accounts

Point 3: The share issue costs were $9,600 and were paid on June 28

Point 4: All allotment money was received by 15 July 2019

Point 5: Directors made the first call on 18 September 2019

Point 6: All Call #1 monies were received by 10 October 2019, except from the holders of 2,000 shares

Point 7: The second call was made on 8 November 2019

Point 8: All Call #2 monies were received by 18 November 2019, except from the holder of another 1,000 shares who did not pay the second call.

Required:

Question 1: Prepare the General Journal and General Ledger entries to account for the share issue up to and including Call #2

Question 2: Prepare table for Allocation of money received on Application.