Reference no: EM132496906

Zorba Ltd was incorporated on 1 July 2019 and issued a prospectus inviting applications for 500,000 ordinary shares at an issue price of $10.

The shares are payable as follows:

1. $5 payable on application
2. $2 payable on allotment
3. $3 payable on call to be made 30th September 2019
4. Share issue costs were $1,500 and legal costs were $500

The transactions for the period were as follows:

1. 31 August 2019: Applications were received for 560,000 shares.
2. 3 September 2019: Applications for 60,000 were rejected by the directors and the application money was refunded to the shareholders concerned.
3. 4 September 2019: The Company allotted 500,000 shares to the remaining applicants.
4. 25 September 2019: All the allotment money was received. Share issue and legal costs were paid in cash.
5. 30 September 2019: The call was made on the shares, payable by 31 October 2019.
6. 31 October 2019: Call money was received from the shareholders of only 480,000 shares.
7. 31 December 2019: The remaining 20,000 shares were forfeited. The forfeited shares were offered to an investment company at a price of $8 per share paid to $10 and the transfer was completed on 31 March 2020. The costs of reissue amounted to $1,500.
8. The company's constitution states that any forfeited shares must be refunded to the shareholders.
9. 30 April 2020: These shareholders received a refund for the amount owed to them.

Required:

Question 1: Prepare the general journal entries (as per template below) in the books of Zorba Ltd to record the above transactions. Provide narrations for all your entries.