February 8 As provided for in the constitution, the ordinary shares on which the call was unpaid were forfeited. The constitution in relation to this class of shares further provided for any surplus on resale, after satisfaction of unpaid calls and associated costs, to be returned to the former shareholders.

100,000 A ordinary shares, issued at $2, called to $1.80	$ 180,000
Less: Calls in Arrears - A ordinary shares	$ (3,500)
120,000 B ordinary shares, issued at $1.50, called to $1	$ 120,000
250,000 5% preference shares, issued at $1, paid to $0.50	$ 125,000
100,000 $1 options	$ 100,000
General reserve	$ 250,000
Retained earnings A ordinary shares - payable as follows:	$ 600,000

$0.80 on application

$0.50 on allotment

$0.50 on 1st call

$0.20 on future calls

B ordinary shares - payable as follows:

$0.50 on application

$0.50 on allotment

$0.50 on future calls

February 20 The forfeited shares were re-issued to Melbourne Investments Ltd, as paid to $1.80 per share for $1.40 cash per share. Share issue cost amounted to $800.

February 21 The balance from forfeiture was returned to the former shareholders.

Required: Prepare general journal entries with working out and narrations