Gundagai Ltd was incorporated on 30 June 2019. On 1 July 2019, the company issued a prospectus offering 300 000 ordinary shares at an issue price of $10, payable on the following terms.

• $3 on application

• $3 on allotment

• $2 on first call

• $2 on second call 

A summary of the applications and allotments register follows.

Shares were allotted to all applicants on 1 September 2019. All money received in excess of amounts due on application was applied to amounts due on allotment and calls. Where appropriate, refunds of application money were made. All allotment money was received by 30 September 2019.

On 1 November 2019, Gundagai Ltd’s directors made a call of 42c per share, payable by 30 November 2019. By 31 December, call money had not been received from holders of 25 000 shares.

Required

(a) Prepare general journal entries to record the above events.

(b) Prepare the ledger accounts (running balance format) for the period 1 July to 31 December 2019.

(c) Prepare the statement of changes in equity for the period ending 31 December 2019.

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Amount paid per share on application $ 3 $ 6 $10 Number of shares applied for 200 000 Number of shares allotted 150000 100 000 50 000 100 000 50000