ABC Ltd was registered on 30 June 2019. The next day, the directors issued a prospectus

inviting applicants for 400000 ordinary shares with an issue price of $2. The shares were

payable in full on application. By 31 July, the company had received 500000 applications,

together with the application monies. The directors allotted 400000 shares on 1 August and

returned the money for additional applications.

Required:

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

(b) Enter the above data into ledgers.