1 (12 points) Part I (9 marks) Sally Ltd is listed on the Australian Securities Exchange. It makes a public offer of shares on 1 July 2023 it receives $500 000 from people wanting to acquire shares. On 14 July 2023 the company allots 1 million share for a price of 1.00 as partly paid to $0.50 per share. The call for the balance of the share price $0.50 is made on the same date. By 1 December 2023 the holders of 900 000 shares have made the payment that is due on the call. The directors decide to forfeit the remaining 100 000 shares. The shares are reissued 14 December 2023 as fully paid. The company receives $0.70 per share when the shares are reissued. The cost of conducting the sale amount to $500. The surplus amounts are returned to the original shareholders after payment of all of the expenses associated with reissuing the shares. Required Provide the journal entries necessary to account for the call, forfeiture and subsequent reissue of Sally Ltd's shares. Part II (3 marks) On 1 July 2023 Sally Ltd provided a total of five million options to three of its key managers. The options have fair value of 50 cents each and allowed the executives to acquire shares in Sally Ltd for $5.00 each. The executives are not permitted to exercise the options before 30 June 2025, but they may then exercise them at any time between 1 July 2025 and 30 June 2026. The market price of the Sally Ltd shares on 1 July 2023 was $4.40. Therefore, if the executives are unable to formulate strategies to increase the value of the firm's shares all option will be 'out of the money' and therefore of limited value. It is assumed that on 31 December 2025 the share price reaches $6.00 and all of the executives exercise their options and acquire the shares in Sally Ltd. Required Provide the accounting journal entries necessary to account for the above transactions and events. Paragraph B I U Lato (Recomm... 19px (... + v ... 5 0