Reference no: EM131624715

Problem - T. Padroni Ltd was incorporated on 2 April 2016 and the following events took place during the financial year ended 31 December 2016.

1 May: Issued a prospectus inviting the public to subscribe for 2,000,000 ordinary shares of $4.80 each, with $2.40 due on application, $1.20 within one month of allotment and the balance to be paid by 1 October.

1 June: Applications closed with the share issue being oversubscribed by 400,000 shares.

15 June: Directors allotted the 2,000,000 shares on a pro rata basis and the amounts received in excess are credited against amounts due on allotment.

15 July: All outstanding allotment monies were received.

1 October: All monies were received for the final call except for the holders of 100,000 shares.

10 October: The directors decided to forfeit the 100,000 shares of the defaulting shareholders.

20 October: The forfeited shares were resold for $4.00 per share as fully paid. Share reissue costs amounted to $10,000. The defaulting shareholders bear all costs of the reissue and any surplus is refunded to them.

Required: Provide the journal entries necessary to account for the above transactions and events for the year ended 31 December 2016 for T. Padroni Ltd. Show all relevant dates and narrations.