Issueof shares by installment; journal entries.

On 30^th September 2011, CayenneLtd issued a prospectus calling for applications for 600000 ordinary shares atan issue price of $3, payable $1.50 on application and $1.50 on allotment. Bythe closing date of 31^st October 2011, the company had received thefollowing application money;

From Applicants for 500000 shares $750,000

From Applicants for 120000 shares $360,000

On 15^th November, it was decidedto allot to applicants who paid more than the application money the number ofshares applied for, and to applicants who paid only the application money480000 shares. Application money was refunded to unsuccessful applicants.

The constitution gives the directors thepower to apply excess application money to allotment. All other allotment moneywas received by 31^st December 2011.

Required: Prepare thenecessary journal entries to record the transactions