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Question - On 1 July 2019, Coastalwatch Ltd issued 5 million shares at $5.00 each. All the shares were subscribed for. Coastalwatch Ltd incurred the following costs that were associated with the share issue:
Advertising of share issue and prospectus 10 000
Accounting fees associated with drafting of prospectus 4000
Legal expenses associated with share issue 5000
Required - Provide the journal entries to account for the receipt of the application monies and the subsequent allotment of the shares.
Channels of Communication, Email
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