On 1 January 2022, Shoalhaven Ltd was registered and, on the same day, the company purchased the net assets (excluding cash) of a partnership for a consideration of 200 000 ordinary shares (fully paid at a price of $2.00 per share.

1 000 000 ordinary shares were offered to the public at $2.00 per share on the following terms:

$1 on application (due 15 January)

60c on allotment (due 15 February)

balance on final call (due 15 May).

By 15 January, applications had been received for 1 200 000 ordinary shares of which applicants for 200 000 shares forwarded the full $2.00 per share.

At a directors' meeting on 16 January, it was decided:

1. to allot ordinary shares in full to applicants who had paid in full on application
2. to allot the remaining ordinary shares from this issue in proportion of 4 for every 5 applied for.

According to the prospectus, all surplus money from applications was to be transferred to allotment and/or call accounts. The share issue costs were $4000 and were paid on 15 February.

By 31 May, all money was received except for the holder of 2000 shares who did not pay the final call.

Question:

(a) Prepare the journal entries to record all the transactions.