Accounting Question - Share Capital

On July 1 20X3, Spain Ltd was registered as a public company.

On 4 July 20X3, a prospectus was issued inviting applications for 20,000 shares payable 45c on application, 25c on allotment and 25c on each of two calls to be made at intervals of 3 months after the date of allotment.

By 31 July, applications were recieved for 24,000 shares. On 3 August, the directors allotted 20,000 shares to the applicants in proportion to the number of shares which applications had been made. The surplus application money was offset against the amount payable on allotment. The balance of allotment money was recieved by 12 August. Share issue costs of $350 were paid on 31 August.

The two calls were made on the dates stated in the prospectus, but the holders of 1 400 shares did not pay either call. In addition, a holder of another 600 shares did not pay the second call. All shares with unpaid call monies were forfeited 31 March 20X4.

Required:

1) Prepare general journal entries to record the above transactions

2) Prepare a state of Shareholders Equity of Spain Ltd on completion of the above transactions.