Accounting for share capital

On 1 February 2019, Sunshine Ltd was registered and issued a prospectus inviting applications for 2,000,000 shares, at an issue price of $3.00, payable as follows: $1.50 on application, $1.00 on allotment (payment due within 1 month of allotment), $0.50 on a call to be made at a later date. The issue was underwritten at a commission of $12,000.

By 28 February 2019, applications had been received for 1,800,000 shares. On 10 March, shares are allotted, and the underwriter forwarded the application and allotment money due on their shares, less their commission. All remaining allotment money was received by 10 April. Other share issue costs amounted to $5,000, and were paid on 15 April.

The call was made on 1 May 2019, with money due by 31 May 2019. All money owing in relation to the call was received by the due date, except for the holders of 20,000 shares who did not pay the call. On 10 June 2019, as provided in the companys constitution, the directors forfeited these 20,000 shares.

On 20 June 2019, the forfeited shares were reissued as fully paid for a consideration of $2.70 per share. Costs of forfeiture and reissue amounted to $4,000, and were paid. The constitution allows for the refund of any balance in the forfeited shares account after reissue to former shareholders, so refunds were made on 25 June 2019.

Required:

Prepare the journal entries to record the transactions of Sunshine Ltd up to and including that which took place on 25 June 2019. Show all relevant dates, narrations and workings (note: workings/calculations may be shown in the narrations).