Reference no: EM132685362

Port Ltd was involved in the following transactions during 1 July 2019 to 30 June 2020 financial period. On 5 September 2019, the directors of the company decided to issue a prospectus calling for applications for 400,000 ordinary shares at an issue price of $3.2, payable $1.3 on application and $1.9 on allotment.

By the closing date of 31 October 2019, the company had received the following application money:

From applicants for 600,000 shares $780,000

From applicants for 100,000 shares $320,000

1. On 15 November, the company allot shares to applicants who paid full price for the number of shares applied for, and to applicants who paid only the application money the remaining shares.
2. The company allot shares to applicants who paid application money based on pro rata basis. They received 1 share for every 2 shares they applied for on 30 November.
3. The constitution gives the directors the power to apply excess application money to allotment. All other allotment money was received by 15 December 2019.
4. On 30 December, the excess amounts paid on application were refunded to applicants after the allotment.
5. The funds raised were transferred to the company's business account.
6. The company declared $560,000 final dividends on 23 August 2020.

Required:

Question 1: Provide journal entries to record the above transactions for 2019/2020 financial year. (Narrations are required)

Question 2: Show related disclosures in the Statement of Financial Position at the end of 2019/2020 financial year.