Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The

terms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month of

allotment.

Applications are received for 36 million shares during July 2019. The directors allot 30 million shares on 15

August 2019. The shares were allotted on a first-come, first-serve basis. The directors refunded the application

money for 6 million shares on 15 August 2019. The amounts payable on the allotment are due by 20 September

2019.

By 20 September 2019, the holders of 5 million shares have failed to pay the amounts due on allotment. The

directors forfeit the shares on 30 September 2019. The shares are resold on 15 October 2019 as fully paid. An

amount of $1.90 per share is received. The remaining balance of forfeited shares were refunded on 20 October

2019.

Required

Provide the journal entries necessary to account for the above transactions and events.