A trial balance taken from Snowy Ltds accounting records at 30 September 2025 showed the following account

Question:

A trial balance taken from Snowy Ltd’s accounting records at 30 September 2025 showed the following account balances. image text in transcribed

At a meeting of directors on 1 October, it was decided to issue additional shares to fund future operations. Accordingly a prospectus was issued on 10 October offering 400 000 ordinary shares at $$1$ each to the public, payable 50c per share on application, 25c per share on allotment and the remainder in one call when required.
By 30 November, applications were received from the public for 24 000 shares in excess of the number available, and the application money paid in on 24 000 shares was refunded to unsuccessful applicants. The rest of the shares were allotted to the successful applicants, including one who had paid in full on application for 4000 shares. The share issue had been underwritten for a fee of $$8000$.
By 15 December, all cash due on allotment had been received, and the underwriting fee was paid on this date.
On 31 January 2026, an interim dividend of 6c per share was paid out of retained earnings on all fully paid equivalent shares.
On 28 February, the remaining call on the shares was made, and all cash was received on the call by 31 March, except for the holder of 7000 shares.

Required

(a) Prepare journal entries in general journal form to record the above transactions.

(b) Prepare the following accounts in T-account format to show the effect of the above transactions: Share Capital, Application, Allotment, and Call.

(c) Prepare a statement of changes in equity for the six months ended 31 March 2026, assuming that the profit made by the company during that period amounted to $$120$ 000.

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