Find an Accountant

details on email Question 2 Sugar Ltd was incorporated on 1 July 2014. The following transactions and events occurred during the year ended 30 June 2015: 1 Aug 2014: Sugar Ltd makes an offer to the public for investors to subscribe for 10,000,000 shares, at an issue price of $3.00 per share, with $1.50 payable on application, $1.00 being payable within one month of allotment, and $0.50 payable on a call to be made at a later date. The issue is underwritten at a commission of $2,000. 31 Aug 2014: Applications close, with applications received for 9,500,000 shares. 2 Sep 2014: Shares are allotted, and the underwriter forwarded the application and allotment money due on the 500,000 shares less their commission. 2 Oct 2014: All allotment money is received. 30 Nov 2014: The call is made, with money due by 31 December 2014. 31 Dec 2014: All call money is received except for holders of 20,000 shares who fail to meet the call. 20 Jan 2015: The shares on which call money was not received are forfeited and sold as fully paid. An amount of $2.60 is received for each share sold. Costs of the forfeiture and reissue amount to $6,000, and are paid. The constitution does allow the refund of any balance in the forfeited shares account after reissue to former shareholders. Required: Prepare the journal entries to record the transactions of Sugar Ltd up to and including that which took place on 20 January 2015. Show all relevant dates, narrations and workings.