1.Prepare journal entries for each of the following transactions for ABL Ltd that started operations in September 2019:

In September 2019, ABC Ltd issued a prospectus offering 500 000 shares at $3.00 per share with $2 payable at the time of application, $0.50 payable on allotment and $0.50 on call. On 15 October, the directors allotted 500 000 shares to subscribers. The call was receivable on 15 November 2019 and all amounts due were collected on 30 November.

On 10 December 2019, the directors of ABC Ltd declared a 10% share dividend to be paid out of the balance in the Retained Earnings account on 20 December 2019.

No narrations required.

2.Calculate the balance of Share capital and Retained Earnings accounts at 31 December 2019 (Profit for the year ended 31 December 2019 was $800,000):

Share capital:

Retained earnings: