Reference no: EM133006812

Question - Springbok Limited has capital comprising of 400000 shares issues at $3.00 and paid to $1.50 as at 30 june 2021. On 1 Sept 2021 a call of $1.20 per share is made the amount of the call is due and payable by 14 Nov 2021.

A total of 250 000 shares of the total capital of 400,000 shares ar paid up om the required call

Om the 3o Nov 2021 the directors decide to forfeit those shares that are not paid on the call and re issue them at $2.50 per share

The re issue occurs on 15 Dec 2021 Various costs are associated with the reissue of the share. The costs include

Legal fees $5000

Brokerage fees $2500

Feasibility Studies $1500

Marketing and Promotion $3000

Overtime paid to employee $1000

According to Springboks Limiteds constitution there is a requirement that any surplus made on Forfeited shares proceeds are to be returned to the former shareholder.

A. Provide journal entries to record the transactions for this event and include narrations for your journals.

b. Is there any requirement for the equity account of a reporting entity to meet any specific region criteria? Explain.