Accounting for share capital

On 1 January 2019, Funland Ltd was registered and issued a prospectus, offering 1,000,000 preference shares at $2.00 payable in full on application by 31 March 2019, and 2,000,000 ordinary shares at $6.00 with $4.00 due on application by 31 March 2019, $1.50 due within one month of allotment, and $0.50 due on a call to be made by the directors at a later date.

By 31 March 2019, the company had received applications for 800,000 preference shares and applications for 2,200,000 ordinary shares. On 15 April 2019, the ordinary and preference shares were allotted. The ordinary shares were allotted to applicants on a pro-rata basis, and the excess application money was retained and credited against amounts due on allotment. All allotment money was received by 15 May 2019.

The directors made the call on the ordinary shares on 1 August 2019, with amounts due by 1 September. By this date, amounts due on 1,960,000 ordinary shares had been received. On 15 September 2019, the shares on which call money had not been received were forfeited and sold as fully paid. An amount of $5.60 was received for each share sold. Costs of the forfeiture and reissue amounted to $7,000, 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 30 September 2019.

Required:

Prepare the journal entries to record the transactions of Funland Ltd up to and including that which took place on 30 September 2019. Show all relevant dates, narrations and workings.