journal entries

Review View Help QUESTION 1 16 marks Emerald Lid has capital that comprises of 400,000 shares issued at $3.00 and paid to $1.50 as at 30 June 2023. On 1 September, 2023 a call of $1.20 per share is made. The amount of the call is due and payable by 14 November 2023. A total of 250,000 shares of the total capital of 400,000 shares are paid up on the required call. On the 30 November 2023, the directors decide to forfeit those shares that are not paid on the call and reissue them at $2.50 per share. The reissue occurs on the 15 December 2023. Various costs are associated with the reissue of the shares. These costs include, Legal fees $5,000 Brokerage fees $2,500 Feasibility studies $1,500 Marketing and promotion $3,000 Overtime paid to employees $1,000 According to Emerald Ltd's constitution there is a requirement that any surplus made on a resale of forfeited shares proceeds are to be returned to the former shareholder. (a) Provide journal entries to record the transactions for this event (you will need to include narrations for your journals). (11 marks) (b) Is there any requirement for the equity account of a reporting entity to meet any specific recognition criteria? Explain. (4 marks)