On 1 March 2020, Orange Limited was registered and a prospectus was issued inviting applications for 1,200,000 ordinary shares at an issue price of $6. The shares were payable $3 on application and $3 on allotment (due 20 April 2020)

By 31 March 2020 application had been received for 1,300,000 ordinary shares. On 1 April 2020, the shares were issued. The constitution allows the directors to apply excess application money to the allotment account. All outstanding money was received by the date, and share issues costs of $7 000 were paid on this date.

Required:

Prepare the journal entries to record the transactions of Orange Limited for the events outlined above.