D METRO SALES PTY. LTD. 2 3 DATA SECTION 4 Ordinary shares on 2 January 2015: 5 No of applications that were offered 300,000 6 No of applications that were received 285.000 Undersubscription 15,000 8 9 Payment terms: 10 Payable on application 11 Payable on allotment 12 Payable on call 13 Issue share's price 14 15 Underwriter fee E se 16 Call in arrears 12,000 shares # # 17 18 ANSTER SECTION 19 Journal entries (in general journal form) 20 General Journal 21 2014 22 31 Jan. Cash Trust 23 Application 24 Cash received on application ($2.50 per share from 285 000 ordinary shares) 25 26 31 Jan. Application 27 Allotment 28 Share Capital 29 Allotment of 300 000 shares (including to the underwriter: 15 000 shares) 30 31 31 Jan. Cash at Bank 32 Cash Trust 33 Transfer of cosh 34 Cash at Bank 36 Share Capital 37 Allotment 38 Application 39 Cash received from underwriter on 15 000 shares ($2.50 on each of application & allotment) 40 41 9 Feb Cash at Bank 42 Allotment 43 Cash received on allotment from 285 000 shares 44 45 15-Jun Call 16 Share Capital 17 Call of $5 per share on 300 000 shares 48 49 15-Jun Cash at Bank 50 Call 51 Call received on 288 000 shares 52 35 9 Feb 3 Ledger accounts (in T account format) General Ledger 5 5 31/1/14 Share Capital Application 31/1/14 Cash Trust 9/2/14 Cash, Allotment (from underwriter) Cash Trust 92/14 Cash at Bank 31/1/14 Application 9/2/12 Underwriter fees Share Capital 31/1/14 Application and Allotment 15/6/14 Call 30/6/14 Balance c/d 30/6/14 Balance b/d 31/1/14 Share Capital Allotment 9/2/14 Cash at Bank 9/2/14 Cash at Bank Cash at Bank 2 31/1/14 Cash Trust 9/2/14 Application, Allotment 9/2/14 Allotment 15/6/14 Call on 30/6/14 Balance b/d 5 5 30/6/14 Balance b/d 8 3 15/6/14 Share Capital Call 15/6/14 Cash at Bank 30/6/14 Balance c/d 2 3 30/6/14 Balance b/d Metro Sales Pty Ltd was registered as a new company on 5 January 2015. On that day a prospectus was issued inviting applications for 300,000 ordinary shares at $10, payable $2.50 on application, $2.50 on allotment and the balance due in one call on 15 June 2015. The issue was underwritten for a fee of $7,000. On 31 January, applications closed with the issue undersubscribed by 15,000 shares. Directors proceeded to allot the shares. Amounts due on allotment were received on 9 February, including the amount due from the underwriter less the underwriter's commission. On 15 June, the amounts due on the call were received with the exception of the amount due on 12,000 shares. e Required;- Prepare general journal entries Prepare the ledger accounts (in T-account format) to record the above transactions
