Hi Team,

Please account for the following share issue.

We are issuing 100,000 shares at $110 per share.

• June 1 $20 Application.
• July 1 Issuance and call for remainder.

We received applications for 290,000 shares. The Board of Directors has decided the following:

• Applicants for 50,000 shares receive the full allotment
• Applicants for 200,000 shares receive one share for every four shares applied for on pro-rata basis
• Reject applications for 40,000 shares

Advertising fees were $12,000, accounting fees $4,000 and legal expenses $5,000, relating to the share issue.

Thanks!

Ps. Afternoon tea is at 4pm see you there!

Required:

Prepare the required journal entries necessary to account for the share issue. Narrations are not required.