On 1 August 2020, Island Ltd issued a prospectus offering 300 000 of its ordinary shares, payable $1on application, $.50c on allotment and $.50c to be called as and when required. When applications closed on 23 August, applications had been received for 400 000 shares, including one applicant for 20 000 shares who had paid in full. The directors allotted the shares on 24 August as follows

On 1 August 2020, Island Ltd issued a prospectus offering 300 000 of its ordinary shares, payable $1on application, $.50c on allotment and $.50c to be called as and when required. When applications closed on 23 August, applications had been received for 400 000 shares. including one applicant for 20 000 shares who had paid in full. The directors allotted the shares on 24 August as follows: 1. The applicant for 20 000 shares, who paid in full, was allotted 20 000 shares. 2. Applications for 20 000 shares were rejected and the application money was refunded. 3. The remaining applicants were allotted 7 shares for every 9 applied for. The excess application money on these shares was to be applied in part payment of allotment money. 4. All allotment money was received by 7 September. 5. A final call on shares was made on 20 November 6. Call money was received on 19 December except from the holder of 1 000 shares Required Prepare journal entries in general journal format to record the share issue. Workings: Allocation of Money Received on Application: OPTIONAL ONLY No. of No. of Money Application Allotment Call in Refund shares shares received ($1) (S.50c) advance applied for allotted (S.50c) DR CR